FxWirePro: USD/CAD declines on higher oil prices, good to sell on rallies

• USD/CAD declined more than 100 pips yesterday after jobs data. The pair hits fresh 2018 high at 1.30013 and declined almost 1.51%. The pair’s weakness was mainly due to exclusion of Canada from steel and aluminum import and better than expected Canadian jobs data. The pair hits low of 1.28066 on Friday and is currently trading around 1.28280.
   
• Canadian economy has added 54700 part-time jobs and lost 39000 full time jobs. Unemployment rate is at 5.8% slipped from 5.9% lowest level since 1976.
   
•  Oil prices has shown a massive recovery on Friday almost 4% on account of reduced US drilling activity and positive jobs market. US rig count reduced by 4 to 796 for the first time in two months.US crude jumped till $62.31 and is currently trading around $61.70.              
   
• On the higher side, major resistance is around 1.2845 (10- day MA) and any break above will take the pair till 1.2920/1.3000.
   
• The near term support is around 1.2800 and any break below will take the pair till 1.2730/1.2700.Short term bearish continuation only below 1.2800.

It is good to sell on rallies around 1.2865-70 with SL around 1.2925 for the TP of 1.2700.