FxWirePro: USDCAD declines sharply on broad based US dollar selling, good to sell on rallies

USDCAD has halted its long winning streak and declined more than 75 pips from high of 1.35214. The decline was due to broad based US dollar selling. US GDP data came better than expected.But slight decline in deflator 1.3% compared to 1.8% in 4th quarter and consumer spending 1.2% declined from 2.5% previous quarter jump was slightly negative for USD. Canadian dollar was trading higher amid a sharp fall in crude oil price.it hits intraday low of 1.34683 and is currently trading around 1.34756.

WTI crude oil lost more than $4 after Trump tweeted on Friday that he spoke with the OPEC producers and has asked to increase supply. It hits low of $62.26 and is currently trading around $63.03.

On the lower side, near term support is around 1.3440 (5- day MA) and any break below will drag the pair to next level till 1.3400/1.3380. Any violation below 1.3370 (20- day MA) confirms further weakness.

The near term resistance is at 1.35250 and any convincing break above will take the pair till 1.3580/1.3660.

It is good to sell on rallies around 1.3510 with SL around 1.3560 for the TP of 1.3400.