FxWirePro: CAD supported by higher oil prices, good to sell USD/CAD rallies

USD/CAD continues its weakness, remains subdued below the 1.30 handle as higher oil prices support Canadian Dollar.

• Chinese stocks are rallying this session on the back of higher oil prices which continues to boost the commodity currencies
   
• The benchmark Shanghai Composite index jumps over 2.5% to 3,264, while Hong Kong's Hang Seng rallies 1% to 22,687
   
• Oil rises on expectations of falling production levels, WTI rallies +1.40% to 50.11 while the Brent oil jumps 0.86% to 53.37
   
• Markets continue to digest the latest U.S. rig count report and also the comments from OPEC's Secretary-general delivered over the weekend
   
• USD/CAD is currently trading at 1.2914, with immediate resistance at 1.2952 (4h 55 EMA) and support on the downside at 1.2860 (July 29 low)
   
• Momentum remains bearish, breaks below could see the pair at 1.2830 levels (cloud base) 
   

Recommendation: Good to sell USD/CAD rallies around 1.2930, SL: 1.2960, TP: 1.2830