USDCAD struggles to break trend line resistance, any bullishness only above 1.3350

Major Resistance- 1.3350

 USDCAD has once again declined after showing a minor jump above the 1.3300 level. Markets eye BOC monetary policy meeting next week for further direction. The central bank is expected to keep rates unchanged at 1.75% but the chance of rate cut in the future has been increased due to ongoing trade war between US-China which is affecting commodity prices including oil. The pair hits high of 1.33180 and is currently trading around 1.32874.

WTI crude oil prices recovered strongly after better than expected US oil inventory. According to EIA, the commercial crude oil inventories have decreased by 10 million barrels compared to an estimate of 2.1 million barrels. 

On the flip side near term, support is around 1.3230 and any violation below will drag the pair to the next level till 1.3180. Any major weakness only below 1.3180 and break below targets 1.3140/1.3090.

 The pair is facing first resistance at 1.3350 and any break above will take the pair to next level till 1.3435/1.350.

 It is good to sell on rallies around 1.3290-925 with SL around 1.3320 for the TP of 1.3225.