FxWirePro: Chinese yuan falls drastically in early Asia after PBoC’s loan prime rate decision; hits lowest level since Dec 12, 2019
FxWirePro: USDCAD trades above 1.3300 amid strong Canadian CPI data, good to buy on dips
Major Resistance- 1.3350
USDCAD has shown a decline of more than 60 pips after the release of Canadian CPI data. The monthly CPI came at 0.5% compared to a forecast of 0.2%. The pair hit low of 1.32500 yesterday and shown good recovery. It is currently trading around 1.32920.
US FOMC minutes was slightly dovish with a couple of policymakers preferred for 50 bpbs rate cut and several want to keep rates unchanged. Markets eye US Jackson hole symposium for further direction.
Crude oil prices are trading in a narrow range despite better than expected crude inventories. According to EIA, there was a draw of 2.7 million barrels compared to the forecast of -1.4 million barrels. It should break above $57.50 for further direction.
On the flip side near term, support is around 1.3230 and any violatio0n below will drag the [air to next level till 1.3180. Any major weakness only below 1.3180 and break below targets 1.3140/1.3090.
The pair is facing first resistance at 1.3350 and any break above will take the pair to next level till 1.3435/1.350.
It is good to buy on dips around 1.3260-625 with SL around 1.3200 for the TP of 1.3350/1.3380.