• FxWirePro: usdcad downside capped by 200-day ma, good to buy on dips

    Source: FxWire Pro - Technicals / 09 Oct 2019 14:51:27   Europe/London

    Major Support- 1.32900

     

    USDCAD trading in a narrow range between 1.33470 and 1.32900 for the past four trading days. The pair is struggling to break above 1.3385 temporary top formed Sep 3rd, 2019. The US-China trade talks were a major event to be watched this week for further direction. Any escalation of trade uncertainty will have a negative impact on the Canadian dollar. It hits a low of 1.32900 and is currently trading around 1.33207.

     

    WTI crude oil prices have halted its 2 weeks of weakness and shown a minor recovery. Any break below $50 confirms further decline.

     

    On the flip side, near term support is around 1.32900 and any violation below will drag the loonie down till 1.3260/1.3230.

     

    The near term major resistance is around 1.3380 and any convincing break above confirms minor trend reversal and a jump till 1.343/1.3500 likely.

     

    It is good to buy on dips around 1.32900 with SL around 1.3260 for the TP of 1.3380/1.3430.

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