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

• USD/CAD declined almost 200 pips after hitting high of 1.26880. The pair hits intraday low of 1.24655. The decline in prices was due to sudden spike in crude oil prices and weakness in US equity markets. It is currently trading around 1.24744.
   
• US CPI came at 0.55 for the Jan month compared to forecast of 0.3%. The pair shown a 80 pips jump till 1.26490 after release of data. But that jump was used as good selling opportunity by traders and declined almost 183 pips from the high.
   
• Oil prices has shown a good recovery from the low of $58.05. Crude oil prices minor jump was mainly due to minor build in inventory. US crude inventory came at 1.8 million barrel compared to forecast of 1.8 million. The increase in US crude oil rigs count increased by 26 to 791 highest level since 3 years. The commodity jumped till $61.52 and is currently trading around $60.94.
   
• On the higher side, major resistance is around 1.25350 and any break above will take the pair till 1.2600/1.26490/1.26880.
   
• The near term support is around 1.2465 (50% fibo) and any break below will take the pair till 1.2435/1.2355. Overall bearish continuation only below 1.2245.

It is good to sell on rallies around 1.2585-90 with SL around 1.2645 for the TP of 1.2500/1.2435.