USDCAD extends weakness below trend line support, dip till 1.3055 likely

USDCAD continues to trade lower for the 2nd consecutive week and lost more than 250 pips from a previous week high of 1.34324. The broad-based USD selling and rising crude oil price. The US dollar index has started to trade extremely lower after the dovish Fed. Crude oil prices jumped nearly 9% in the previous week on Middle East tension escalation. The oil hits an intraday high of $58.20 and is currently trading around $57.83.

Markets eye OPEC meeting which is to be scheduled on Jul 1-2nd for further direction.

Technically, near term support is previous week low 1.3150 and any violation below will drag the pair till 1.31150 (200- W MA). Any close below will target 1.30680 (Jan 2019 low).

The near term resistance is around 1.3230 (55- W EMA) and any jump above that level will take USDCAD till 1.3275/1.3310.

It is good to sell on rallies around 1.3230-35 with SL around 1.3280 for the TP of 1.3120.