FxWirePro:USD/CAD downside capped by 200-day MA, good to sell on rallies

USDCAD has halted its one week of down trend and shown a minor recovery. The pair hits low of 1.31500 and jumped more than 50 pips from the low.It has formed minor top around 1.3340 and lost more than 180 pips on account of US-China trade talks optimism and strong crude oil price. US dollar index hits low of 96.29 and shown a minor jump and any further bullishness only above 97.37 high made on Feb 15th 2019.Markets eye BOC Gov Poloz speech for further direction. The pair has formed temporary top around 1.36648 on Jan 2nd on account of better than expected Canadian economic data and jump in crude oil price and declined till 1.30685. It is currently trading around 1.31953.

Crude oil prices jumped sharply and hits fresh 3 -month high on US -China trade talks optimism.Brent has jumped more than $17 from low of $50.29 low made on Dec 26th 2018. It is currently trading around $67.02.

On the higher side, near term resistance is around 1.3265 and any break above will take the pair to next level till 1.3300/1.3340/1.3380/1.3435/1.3500.

The major support is at 1.3140 and any violation below will drag the pair down till 1.3079/1.3060/1.3000.

It is good to sell on rallies around 1.3225-30 with SL around 1.3265 for the TP of 1.3140/1.3078.