USDCAD is trading weak for the past 10 days and lost more than 150 pips on account of surging oil prices. Canadian seasonally adjusted CPI came at 2.2% in Nov Y-O-Y compared to Oct 1.9%. It hits a low of 1.31024 and is currently trading around 1.31165.
WTI crude oil price hits 3- month high around $61.17 on US-Chin trade optimism, but smaller than expected US inventory decline dragged the prices slightly down.
On the lower side, the pair is facing strong support at 1.3100 and any violation below will drag the pair down to 1.3040/1.3020. Major bearish continuation only beneath 1.3020.
The near-term minor resistance is around 1.31800, any break above targets 1.3230/1.3270/1.3320. Trend reversal only above 1.3385.
It is good to sell on rallies around 1.3138-40 with SL around 1.3180 for the TP of 1.3040.
