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FxWirePro: USDCAD trades well below 1.3130, dip till 1.3020 likely 

USDCAD continues to trade weak for 3rd consecutive week and lost more than 250 pips after forming a temporary top around 1.33458. The decline in Loonie was mainly due to broad-based US dollar selling on weak economic data. The slight easing of US-China trade tension is also supporting the Canadian dollar as the economy depends much on commodity exports. It hits a low of 1.31020 and is currently trading around 1.31045.

WTI crude oil is trading lower after huge build up in inventory and EIA reported a 9.3 million increase for the week to Oct 11. Any break above $55.05 confirms further bullishness. 

On the lower side, major support is around 1.30890 and any violation below will drag the pair down till 1.3020/1.3000.

The near term major resistance is around 1.3180 and any break above targets 1.3235/1.3300. Any violation above 1.3385 confirms further bullishness.

It is good to sell on rallies around 1.3138-40 with SL around 1.3180 for the TP of 1.3020.

By Rangarajan Hariharan
  • Market Data
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