FxWirePro: USDCAD trades weak after Canada's trade surplus, good to buy on dips

USDCAD continues to trade lower after a minor jump till 1.31453 yesterday. The better than expected Canadian trade balance is one the reason for weakness in the pair. Canada's trade balance was at the C$762M surplus compared to the forecast of the C$1.70M deficit. But the US trade deficit has swollen from $51.2B to $55.5 worst than the forecast of $53.2B. The pair has broken low  at1.30595 made on Jun 28th, 2019. It is currently trading around 1.30734.

According to EIA, commercial crude inventories declined by 1.1 million compared to forecast of -2.8 million. US oil has shown a minor pullback after a $4 decline till $56.03 yesterday. It is currently trading around 1.30744.

The near term resistance is around 1.3150-588 (23.6% fib and 10- day MA) and any break above will take the pair to next level till 1.3185/1.3230. Minor trend reversal only above 1.3230.

On the flip side, near term support is at 1.30585 and break below targets 1.302/1.3000.

It is good to buy on dips around 1.30680-700 with SL around 1.3000 for the TP of 1.3230.