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FxWirePro:USD/CAD trades slightly lower on slight recovery in crude after massive sell-off, markets eye Canada manufacturing sales

USDCAD has halted its bullish trend after massive 450 pips jump from low of 1.2780 made on Oct 1st 2018. The Canadian dollar was trading weak and hits 4 -month low on account of huge plunge in crude oil prices. The pair hits high of 1.32636 and shown a 100 pips decline from that level. It is currently trading around 1.31680.

 

Brent crude has shown huge decline of more than 25% from the high on account of increase in supply from Saudi and also continuous increase in US crude oil inventory. It hits low of $64.69 and is currently trading around $67.40.

 

With no major events in US today market eyes Canada manufacturing sales for further direction.

 

The near term resistance is around 1.3200 and any break above targets 1.32661 (78.6% fib)/1.3300.

 

On the lower side , major support is around 1.3135 (20- day MA) and any break below targets 1.3070/1.3050 (89- day EMA).

 

It is good to buy on dips around 1.3135 with SL around 1.3070 for the TP of 1.3260.

 

 

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