FxWirePro: USD/CAD Trade Idea

• Canadian dollar recorded biggest one day rally in two months after more dovish comment from BOC Governor Poloz yesterday. Bank of Canada has kept its interest rates unchanged  at 1.25% yesterday. The central bank said that inflation is near to its 2% target and is expected to rise in coming months on account of rise in gasoline price. The recent Canadian economic data shows that economy is expected to grow at 2% in the first half of this year. The pair declined almost 200 pips yesterday and hits low of 1.28360 and is currently trading around 1.28511.
• WTI Crude oil prices has shown a minor jump till $68.63 and started to show minor decline after API inventory data. It is currently trading around $67.68.
• Technically near term resistance is around 1.29250 and any convincing break above targets 1.2965/1.300/1.3050.Major bullish continuation only above 1.3125.
• On the lower side, near term support is around 1.2800 and any convincing break below will drag the pair down till 1.2740/1.2700.

It is good to sell on rallies around 1.2900-05 with SL around 1.2965 for the TP of 1.2800/1.2745.     

Resistance

R1- 1.2925
 

R2 –1.3000
 

R3- 1.3050

Support               
 

S1- 1.2800
 

S2-1.2745
 

S3-1.27000