USD/CAD declines slightly on tariff exclusions, buy on dips : FxWirePro | March 8, 2018

USD/CAD 0.28% declined more than 100 pips yesterday after BOC -0.53% monetary policy . The pair hits fresh 2018 high at 1.30013 and declined almost 1%. The pair’s weakness was mainly due to tariff exclusion on Canada and Mexico for steel and aluminum products. The pair hits low of 1.28657 yesterday and shown a minor jump. It is currently trading around 1.29275.

The Bank of Canada kept its key interest rate target on hold at 1.25%. But recent developments in trade policy will be major factors that affect the economy of Canada.

Oil -0.49% prices has shown minor jump after declining almost $1.50 yesterday. US crude has rose slightly less than expected at 2.4 million barrels compared to forecast of 2.6 million barrels. It is currently trading around $61.04.

On the higher side, major resistance is around 1.3000 and any break above will take the pair till 1.3000/1.3070.

The near term support is around 1.2868 (7- day MA) and any break below will take the pair till 1.2800/1.2760.Short term bearish continuation only below 1.2800.

It is good to buy on dips around 1.2915-20 with SL around 1.2860 for the TP of 1.3000/1.3070.