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FxWirePro: USD/CAD trades well above 1.3000 on easing crude oil prices , jump till 1.3175 likely

USD/CAD has jumped more than 150 pips yesterday on account of sudden decline in crude oil prices. The pair hits high of 1.30694 yesterday and shown a minor decline. It is currently around 1.30473.

 

US 10 year bond yield shown a minor selling of more than 3% after hitting multiyear high at 3.25%. It is currently trading around 3.17%. the 2 year yield also lost more than 4% after Donald Trump’s comment on Fed interest rate hike. US CPI came slightly weaker than expected. It came at 0.1% compared to forecast of 0.2%.

Crude oil has lost more than $3 after US API inventory report which shows that inventories climbed by 9.7 million barrels in the week of Oct 5 to 410.7 million , compared to analyst forecast of an increase of 2.6 million barrels. Markets eye US crude inventory data to be released today for further direction. Any daily close below $72 confirms minor weakness and decline till $70 is possible.

 

On the higher side near term resistance is around 1.3050 (100 -day MA) and any close above targets 1.3080/1.3175.

 

The near term support is around 1.3000 and any violation below targets 1.2965/1.2920/1.2870 (200- day MA)/1.27800. Any break below 1.27800 confirms bullish continuation.

 

It is good to buy on dips around 1.3000 with SL around 1.2960 for the TP of 1.3080/1.3175.

 

 

 

 

 

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