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FxWirePro: USDCAD hits 4-week high, jump till 1.3385 likely

USDCAD trade higher and broken major resistance 1.32750 after a long consolidation. The jump was mainly due to declining crude oil prices and weak Canadian manufacturing sales. It came at -0.2% in Sep, following a 0.8% in the previous month. But it was slightly better than the forecast of -0.5%. It hits a high of 1.33148 and is currently trading around 1.33121

 

WTI crude oil declined lost more than $ 2 yesterday after a weaker than expected crude inventory. The API has reported an inventory build-up of 5.945 million bbls compared to an estimate of 1.543 million barrels. It hits low of $55.01 and is currently trading around $55.33.

 

On the higher side, near term resistance is around 1.3320 and any violation above targets 1.3385. Major trend reversal only above 1.3385.

 

The near term support is around 1.3230, any indicative break below will drag the pair down till 1.3180/1.3135/1.3100. Bearish continuation only below 1.3020.

 

It is good to buy on dips around 1.3268-70 with SL around 1.3230 for the TP of 1.3385.

 

By Rangarajan Hariharan
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