FxWirePro: USDCAD recovers slightly on minor pullback in US dollar, good to buy on dips

USDCAD recovered more than 100 pips from a low of 1.3988 on a minor increase in the US dollar index. DXY surged from 98.84 to 99.59 and any minor bullishness only past 100.95. The Canadian dollar was one of the worst performers this year due to coronavirus and oil price slump. The economy is expected to perform very worst in the coming quarter as it is mostly export-oriented. It is currently trading around 1.41776.

WTI crude oil has shown a dip of more than $2 after a pullback till $25.20.Any breaking above $25.85 confirms bullishness, a jump till $30 likely.

Technically, near term resistance is around 1.4180 and any violation beyond targets 1.435/1.3850/1.4425/1.4530. Significant trend continuation only if it breaks 1.4660.

On the flip side, immediate support is at 1.3900 and the indicative break beneath will drag the pair down till 1.3600/1.3300.

It is good to buy on dips around 1.40750 with SL around 1.4030 for the TP of 1.4180.