• FxWirePro: USD/CAD trades higher on weak Canadian GDP, good to buy on dips

    Source: FxWire Pro - Technicals / 05 Mar 2018 06:05:10   Eastern Standard Time

    • USD/CAD continuing its bullishness and hits fresh 2018 high at 1.29156 on Friday after slightly weaker than expected Canada GDP data. The pair shown a minor decline from the high. The Canadian dollar down almost 0.80% this month following 4.85% in previous month. It is currently trading around 1.28923.
    • Canadian economy grew at an annualized pace of 1.7% in the fourth quarter versus economist expectations for 2% growth. U.S tariffs on steel and aluminum and uncertainty around NAFTA will affect the growth of Canadian economy.
    •  Oil prices has shown a minor recovery after hitting low of $ 60.17 on account of weak US dollar .But upside is expected to be capped due to higher US crude oil production and is currently trading around $61.65.     
    • On the higher side, major resistance is around 1.2920 and any break above will take the pair till 1.2965/1.3000.
    • The near term support is around 1.2800 and any break below will take the pair till 1.2720 (38.2% fib)/1.265/1.2620 (61.8% fib). Short term bearish continuation only below 1.2450.

    It is good to buy on dips around 1.2855-60 with SL around 1.2800 for the TP of 1.2965/1.3000.