FxWirePro: USDCAD trades lower on rising crude oil price, dip till 1.3200 likely

USDCAD has once again declined after a minor recovery. The recovery was due to positive US economic data.But overall US dollar index has started to decline on profit booking and sudden surge in US bond yield. The more than $2.5 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 1.3 and is currently trading around 1.33196.

WTI crude has gained more than $1 yesterday and hits fresh 5-month high on OPEC supply cut and US sanctions. American Petroleum Institute said yesterday that US crude oil inventories rose 3 million barrels last week.It hits high of $62.96 and is currently trading around $62.57.

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 1.3290 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.