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

• USD/CAD declined almost more than 200 pips from 7- week high of 1.29937 made yesterday on account of rise in crude oil prices. Donald Trump announced yesterday that US will withdraw from 2015 nuclear deal and once again will re impose sanctions on Iran. US pulling out of deal a blow to allies and it will also increase Middle East tensions. Loonie hits low of 1.2775 at the time of writing and is currently trading around 1.27830.
   
• WTI Crude oil prices has broken $71 for the first time since 2014 on account of re impose of economic sanctions on Iran by US. Iran is second largest producer of in OPEC. It hits high of $71.86 and is currently trading around $71.55.
   
• Technically near term resistance is around 1.2865 and any convincing break above targets 1.2925/1.2965/1.300. Major bullish continuation only above 1.3125.
   
• On the lower side, near term support is around 1.2780 (55- day EMA) and any convincing break below will drag the pair down till 1.2710 (61.8% fibo)/1.2660/1.2600.

It is good sell on rallies around 1.2805-10 with SL around 1.2865 for the TP of 1.2717/1.2660.