FxWirePro:USD/CAD Trade Idea

USD/CAD recovers more than 150 pips from low of 1.32537 on account of inverted Canada yield curve and weak crude oil price. Loonie hits 6-month high at 1.3449 and shown a minor profit booking. The main reason for decline in Canadian dollar is yield curve inversion. Canadian 5 year yield is at 2% slightly below 2-year yield 2.05%. The pair hits intraday high  of 1.34215 and currently trading around 1.3398.

Brent crude oil price has declined slightly after a good jump on OPEC agreed for production cut of 1.2 million barrels a day .It has jumped till $63.67 and is currently trading around $61.67.

On the lower side, near term major support is around 1.3320 and any break below will drag the pair till 1.3250/1.3160.

The pair is facing major resistance around 1.3450 and any break above targets 1.3500/1.3585 is possible.

It is good to buy on dips around 1.3380 with SL around 1.3320 for the TP of 1.3500.

Resistance

R1- 1.3450

R2 - 1.3500

R3- 1.3585

Support               

S1- 1.3380

S2- 1.3320

S3- 1.3250