FxWirePro: USD/CAD trades weak on strong crude oil prices, good to sell on rallies

• Canadian dollar has shown a major recovery yesterday after US Senate informed that there are planning to delay corporate tax cuts. USD/CAD declined sharply and broken major support at 1.27000 and is currently trading around 1.26709.
   
• GOP Senate leaders announced a tax package that it will delay cutting corporate tax from 35% to 20% until 2019. US senators delayed the corporate tax cut in an effort to keep the impact of the proposed bill under $1.5 trillion.
   
• Canadian dollar are also supported by Bank of Canada Governor Poloz slightly hawkish tone on interest rate and is expected to hike rates in first quarter of 2018 if inflation continuous to rise. Canadian new home prices rose in Sep housing. Canada’s new price index rose by 0.02% Sep on a m-o-m and 3.8% on YOY basis.            
• Crude oil soars almost 6% previous week on geo political tensions in Saudi. But it shown a minor decline after slight increase in inventories WTI crude after hitting high of $57.89 . It is currently at $57.17.
   
• Technically on the higher side near term resistance is around 1.2728 (20- 4H MA) and any break above will take the pair to next level till 1.2765/1.2825/1.29000. Bullish continuation can be seen only above 1.2928.
  
   
• The major support is around 1.2600 and any break below will drag the pair to next level till 1.2570(233- 4 H 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 1.2755-1.2760 with SL around 1.2825 for the TP of 1.2605./1.2505.