FxWirePro: USD/CAD Trade Idea

USD/CAD declined more than 150 pips from high of 1.33750 in previous week. The decline was mainly due to jump in oil price and broad based US dollar selling . The pair hits low of 1.3203 and is currently trading around 1.32168.

The economic data which was released this month was mixed with Canada’s inflation came at 2% YOY compared to forecast of 1.7% highest level in years. But retail sales data fell more than expected -0.9% vs -0.6% forecast.

Crude oil prices are holding higher slightly above $60 as political turmoil in Venezuela threatened to tighten oil supply.

On the higher side near term resistance is around 1.3245 and any break above targets 1.3300/1.3380.

The near term support is around 1.3190 and any break below targets 1.3150/1.3090.

It is good to sell on rallies around 1.3265-70 with SL around 1.3305 for the TP of 1.3090/1.3000

Resistance

R1- 1.3245

R2 - 1.3300

R3- 1.3380

Support               

S1- 1.3195

S2- 1.3130

S3- 1.3090