FxWirePro: USD/CAD trade Idea

USD/CAD continues to trade weak after a minor recovery. The pair jumped till 1.32193 and started to decline. The main reason for Canadian dollar strength is broad based US dollar selling after US-China trade truce and slight improvement in crude oil prices. Markets eye Bank of Canada monetary policy tomorrow for further direction. Economist predict that Alberta oil cut could delay Bank of Canada rate hike. Loonie declined till 1.31640 at the time of writing and currently trading around 1.31706.

Brent crude oil price has recovered more than 10% on hopes of production cuts by OPEC in the meeting on Dec 6th 2018 in Vienna. It hits high of $63.55 and is currently trading around $63.30.

On the lower side, near term major support is around 1.3130 (55- day EMA) and any break below will drag the pair till 1.3090/1.3000.

The near term resistance is around 1.3260 and any convincing break above targets 1.3320/1.3385 (Jun 27th 2018 high).Any break above 1.3380 confirms bullish continuation.

It is good to sell on rallies around 1.31825-85 with SL around 1.3260 for the TP of 1.3000.

Resistance

R1- 1.3215

R2 - 1.3260

R3- 1.3320

Support               

S1- 1.3130

S2- 1.3090

S3- 1.3000