FxWirePro: USDCAD hits 2-week low on broad based US dollar selling, good to sell on rallies

USDCAD trades lower for 4th consecutive day and decline more than 150 pips on broad based US dollar selling. The declining bond yield and yield curve inversion is putting pressure on USD. Fed Chairman Powell clearly said yesterday that central bank “will act appropriate” if US economy poses any risk on account of trade war This increased hopes of further rate cut. The pair hits low of 1.33691 amid weak crude oil price. It is currently trading around 1.33716.

Crude oil is trading extremely weak and lost more than 20% from high due to trade war and increasing supply.

The major support is around 1.3350 and any violation below will drag the pair to next level till 1.3300/1.3265.

The near term resistance is 1.3435 and any convincing break above targets 1.3475/1.3520.The pair should break above 1.3565 for further bullishness.

It is good to sell on rallies around 1.3400-05 with SL around 1.3435 for the TP of 1.3300.