USD/CAD trades higher on weak Crude Oil price, good to buy on dips
- USD/CAD continuing its bullishness for fifth consecutive days. The pair jumped almost 360 pips form the low of 1.22472. The jump in prices was mainly due to rise in US 10 year bond yields and declining crude oil prices. The pair hits intraday high at 1.25914 and is currently trading around 1.25890.
- US 10 year bond yield once again sparked till 2.85% after showing a minor decline till 2.74%. The reason for rise in yields is due to increase in inflation and that will increase chance of rising interest rates by Fed.
- Oil prices declined almost 2.5% yesterday and hits one month low on rising US crude stock piles. US crude production hits record high of 10.25 million barrels per day. The commodity hits low of $61.31 and is currently trading around $61.63.
- On the higher side, major resistance is around 1.2600 and any break above will take the pair till 1.2660/1.2700.
- The near term support is around 1.2535 (55- day EMA) and any break below will take the pair till 1.2500/1.2435.
It is good to buy on dips around 1.2575-80 with SL around 1.2535 for the TP of 1.2660/1.2700.
Source: FXWire Technicals