FxWirePro: USD/CAD trades weak, market eyes BOC monetary policy

• CAD has recovered sharply after showing a minor jump till 1.2590 on Jan 11th 2018 from the low of 1.2355 made on Jan 5th 2018. USD/CAD declined despite strong inflation numbers. Market awaits BOC monetary policy meeting on Jan 17th 2018 for further movement. The pair declined till 1.2436 and is currently trading around 1.24375.
   
• BOC is expected to hike interest rates by 25 bpbs after back to back strong employment reports and other positive economic indicators.
   
• Crude oil price hits 3 year high at $64.75 on account of series of geo political tensions and OPEC production cut. The commodity shown a minor profit booking almost $1.75 from the high due to overbought situations and jumped slightly. The increase in shale gas production will prevent the further rise. It is currently trading around $64.30.
   
• Technically, major short term support is around 1.2435 and any break below will drag the pair till 1.23550. Short term bullish invalidation below 1.23550.
   
• On the higher side, near term major resistance is around 1.26000  and any break above will take the pair to next level till 1.2638 (daily Kijun-Sen)/1.27070 (61.8% retracement). Short term bearish invalidation only above 1.2925.  The minor resistance is around 1.2495 (10- day MA).

It is good to sell on rallies around 1.2525-30 with SL around 1.2600 for the TP of 1.2350/1.2300.