USDCAD recovered slightly yesterday after better than expected US ISM manufacturing data. But more than $1.5 jump in crude oil is putting pressure on loonie.US dollar is trading higher against all majors expect Canadian dollar and has declined more than 150 pips.It hits low of 1.33383 and is currently trading around 1.33196.
WTI crude has gained more than $2 and hits 5-month high on decline in US shale output and US and China trade optimism. According to Baker Hughes report number of active rigs was 1006 down 10 rigs from last week count biggest decline in three years.It hits high of $62.17 and is currently trading around $61.87.
On the higher side major resistance is around 1.3400 and any convincing break above will take the pair to next level till 1.3450/1.34675. It should break above 1.34675 for further bullishness.
The near term support is around 1.3320 and any violation below will drag the pair to next level till 1.3300/1.3250.Any violation below 1.3250 confirms minor weakness.
It is good to sell on rallies around 1.3365-70 with SL around 1.3400 for the TP of 1.3255.
