FxWirePro: USD/CAD Trade Idea

• USD/CAD is continuing its bullish trend for fourth consecutive day. The pair has broken major resistance 1.26493 and jumped till 1.26700 at the time of writing.  It is currently trading around 1.26600. The good jump in USD/CAD yesterday is due to slight weaker than expected Canada wholesale trade. DXY continuing its bullish trend for fourth consecutive days and is trading at 89.85 0.14% higher.
   
• Canadian whole sale trade came at -0.5% for the month of Jan compared to forecast of 0.4%. Oil prices continuing its weakness after hitting high of $62.62. Crude oil prices upside is limited due to increase in US rig count for fourth consecutive week.         
   
• On the higher side, major resistance is around 1.2675 (trend line resistance) and any break above will take the pair till 1.2700/1.2760.
   
• The near term support is around 1.2580 (23.6% fibo) and any break below will take the pair till 1.2535 (55- day EMA)/1.2500. Overall bearish continuation only below 1.2245.

It is good to buy on dips around 1.2640-45 with SL around 1.2580 for the TP of 1.2735/1.2780.

Resistance
 

R1-1.2675
 

R2 – 1.2700
 

R3-1.2760

Support               
 

S1-1.2580
 

S2-1.2530
 

S3- 1.2480