FxWirePro: USD/CAD trades lower on higher oil price, good to sell on rallies

• Canadian dollar recovered slightly from the low of 1.25976 made on Oct 6th 2017 and is continuing its bullish trend for past four trading days. Canadian dollar has shown a minor jump after better than expected economic data which has been released previous week and also on slight jump in crude oil price.
   
• U.S President Donald trump open to bilateral talks with Canada. He said he consider trade pact with Canada minus Mexico and planning for separate trade pact with Canada and Mexico to replace North America Free trade Agreement.
   
• Crude oil prices is trading slightly above $50 on account of increasing speculation of production cut buy OPEC members and declining inventories.
   
• On the lower side, major support is around 1.2403 (20- day MA) and any break below will drag the pair to next level till 1.23400/1.22656 (61.8% retracement of 1.2061 and 1.25971).
   
• The near term resistance is around 1.25180 (55- day EMA) and any break above will take the pair to next level till 1.2550/1.2600. Further bullish continuation only above 1.2600.

It is good to sell on rallies around 1.2460-65 with SL around 1.2518 for the TP of 1.2405/1.2355.