Major support – 1.3800
Loonie has broken major resistance 1.40018 and jumped till 1.40393 at the time of writing. It is currently trading around 1.40380.
Any break above 1.40018 confirms major trend reversal a jump till 1.4536/1.4980 is possible.
The policy divergence and decline in oil prices have dragged the Canadian dollar to 12 year low. The market also awaits FOMC minutes meeting for further upmove.
On the lower side major weakness can be seen only 1.3800 and any break below 1.3800 targets 1.3690/1.3550. The minor support is around 1.3980 and break below will drag the pair down till 1.3927/1.3880/1.3800.
It is good to buy at dips around 1.4025-30 with SL around 1.3980 for the TP of 1.4500