Candlestick pattern formed- Bullish Engulfing pattern
USDCAD is trading higher for 2nd consecutive week and recovered more than 150 pips on account of weak Canada GDP data. Canadian economy has increased 0.4% compared to expectations of 1.0% and fell 0.1% in Dec straight two month on month decline. The pair hits high of 1.33062 and is currently trading around 1.32907.
Crude oil declined sharply from high of $67.70 and hits low of $64.29 on slight weak US economic data. US-China trade hopes and decline in US rig count data to support crude oil price at lower level. It is currently trading around $65.22.
On the higher side, near term resistance is around 1.3340 and any break above will take the pair to next level till 1.3380/1.34450 (61.8% fib).
The near term support is around 1.3260 and any break below will drag the pair till 1.3230/1.3180 (61.8% fib)/1.3110. Any violation below 1.3110 confirms further weakness.
It is good to buy on dips around 1.3255-60 with SL around 1.3200 for the TP of 1.3380
