FxWirePro: USDCAD trade Idea

USDCAD has slipped more than 100 pips yesterday after hawkish rate hike by Bank of Canada. BOC governor hiked interest rates by 25 basis point to 1.75% yesterday. The central bank was optimistic on the economy after new trade agreement between US ,Mexico and Canada and stated that further rate hike to come. The pair hits low of 1.2965 and is currently trading around 1.30279.

Crude oil is trading weak and has lost more than 4% and hits low of $75.05 on account of global stock market sell-off and due rise in US crude inventories by 6.3 million barrels compared to forecast of 3.7 million barrels increase. It is currently trading around $76.18.

On the lower side any break below 1.2960 will drag the pair down to next level till 1.2909 (200- day MA)/1.2800.

The near term resistance is around 1.3060 and any break above targets 1.310/1.3135.The pair should break above 1.3135 for further bullishness.

It is good to sell on rallies around 1.3058-60 with SL around 1.3100 for the TP of 1.2965/1.2905.

Resistance

R1- 1.3060
 

R2 - 1.3135

R3- 1.3175

Support               

S1- 1.2960

S2- 1.2900

S3- 1.2805