FxWirePro: USDCAD hits multi-month low, good to sell on rallies

Major resistance 1.31500

Major support - 1.3000

USDCAD is trading lower for 4th consecutive days and lost more than100 pips from minor top 1.3145.US PPI data also came better than expected like CPI. Core PPI is at 0.3% compared to an estimate of 0.2%. Last week BOC has clearly stated that the housing market is stabilizing and no plan to ease interest rates this year. The policy divergence between the US Fed and the Bank of Canada is supporting the Canadian dollar.

The crude oil prices jumped slightly after better than expected Chinese industrial output and retail sales. Oil has almost formed a double top around $60.90 and declined more than $1 for the day.

 Technically, on the flip side near term support is around 1.3000 and any violation below will drag the pair to the next level till 1.2965/1.2920 level.

The major trend reversal only above 1.3150 and minor resistance is around 1.30820/1.3125.

It is good to sell on rallies around 1.3060-625 with SL around 1.3100 for the TP of 1.2965.