FxWirePro: USD/CAD trades well below 55- day EMA,market eyes BOC meeting

USD/CAD continues to trade lower for the past one week after best performing currency  in 2018. The pair lost nearly 400 pips from high 1.36648 level. The Canadian dollar was trading higher against all majors on rising oil prices. Canada trade deficit deteriorated for a third time in four months and worst in six months. The reason for wide deficit is due to decline 2.9% in exports. Markets eye Bank of Canada policy which is to be released tomorrow . The central bank is expected keep rates on hold on weak oil price and weak headline inflation. Crude oil prices has jumped nearly 20% from low of $50.14 on easing trade talks between US and China and OPEC cuts. US EIA crude inventory report which is to be released today  will have impact on Indian operation. It hits high of $60.10 and is currently trading around $59.85.

On the lower side, near term major support is around 1.3250 and any violation below confirm further weakness and a dip till 1.3150/1.3090 is possible.

The near term major resistance is 1.33650 and any break above targets 1.3425/1.3475 (20-day MA)/1.3520.

It is good to sell on rallies around 1.3330-35 with SL around 1.3400 for the TP of 1.3160.