FxWirePro:USD/CAD hits 2-week low on broad based US dollar selling and strong crude oil price, good to sell on rallies

USDCAD is trading weak for fourth consecutive day and lost nearly 60 pips in this week. It  has formed minor top around 1.3340 and lost more than 150 pips on account of US-China trade talks optimism and strong crude oil price.US dollar index has declined more than 60 pips yesterday and any further bullishness only above 97.37 high made on Feb 15th 2019.Markets eye US FOMC meeting minutes and 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 1.31926.

Crude oil prices is consolidating after hitting 3 month high. Market eyes US -China trade talks for further direction.Brent has jumped more than $15 from low of $50.29 low made on Dec 26th 2018. It is currently trading around $66.07.

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 1.3180 and any violation below will drag the pair down till 1.3140 (200- day MA)/1.3079/1.3060.

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