FxWirePro: USD/CAD trades weak on better Canadian economic data, good to sell on rallies

• Canadian dollar has shown a minor bullishness yesterday after better than expected Canada Housing starts and Building permits data. USD/CAD declined after showing minor jump till 1.28160 and is currently trading around 1.27214.
   
• Canadian dollar are also supported by Bank of Canada governor Stephen Poloz neutral stance on interest rate hike. Poloz said that the Central bank will monitor the economy growth rate after recent rate hikes. He also reiterated that Central bank will be cautious on further rate hike even if wage growth shown up. If there is any policy divergence between US and Canada.
   
• Crude oil soars almost 6% previous week on geo political tensions in Saudi. But it shown aminor decline after slight increase in inventories WTI crude declined slightly after hitting high of $57.89 . It is currently at $56.84.
   
• Technically on the higher side near term resistance is around 1.2835 (61.8% retracement of 1.29167 and 1.27020) and any break above will take the pair to next level till 1.2900/1.2928 (50% retracement of 1.. Bullish continuation can be seen only above 1.2928.
   
• The major support is around 1.2710 (23.6% retracement of 1.20613 and 1.29148) and any break below will drag the pair to next level till 1.2610 (100- day MA)/1.2520 (38.2% retracement of 1.2060 and 1.29167). Minor weakness can be seen only below 1.2600.

It is good to sell on rallies around 1.2825-1.2830 with SL around 1.2928 for the TP of 1.2605./1.2505.