FxWirePro: USD/CAD trades weak on rising crude oil price, good to sell on rallies

• CAD outperformed USD and enjoyed more than 150 pips rally in 2018.  USD/CAD declined sharply after forming temporary top around 1.29202 on Dec 19th 2017. The main reason for the rally in Canadian dollar is due to better than expected Canadian jobs data and rising crude oil price. The pair hits low of 1.2355 and is currently trading around 1.24515.
   
• Canadian economy has added 78600 jobs for the month of Dec compared to forecast of 1000. The unemployment plunged to lowest level in 40 years. The unemployment rate came at 5.7% compared to 6%.
   
• Crude oil price hits 3 year high at $63.58 on account of protest in Iran and decrease in number of US rig counts. US re impose of sanctions on Iran will make the country harder to export oil globally. US oil prices jumped till $62.53 and is currently trading around $63.58.
   
• Technically, major short term support is around 1.23780 (61.8% fib of 1.2060 and 1.29104) and any break below will drag the pair till 1.22950/1.2200. Overall bullish invalidation only below 1.2060.
   
• On the higher side, near term major resistance is around 1.2490 (23.6% fibo) and any break above will take the pair to next level till 1.2557 (10- day MA)/1.2600 /1.2638 (daily Kijun-Sen). Short term bearish invalidation only above 1.2925.

It is good to sell on rallies around 1.2475-1.2480 with SL around 1.255 for the TP of 1.2355/1.2300.