FxWirePro: Cable’s hammer takes-off rallies above DMAs, Can bulls breakout descending triangle in major trend?
FxWirePro:USD/CAD jumps back above 1.4000 level on weak crude oil price and Canadian yield curve inversion, good to buy on dips
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 1.33200 for the TP of 1.3500.