USDCAD has gained nearly 75 pips after a sharp sell-off of more than 150 pips from high of 1.34028.The decline was due to rising oil prices and broad based US dollar selling.Oil prices hits fresh 5-month high due to escalation of Libya conflict.OPEC member Libya’s total supply is around 1.1 million barrels per day 1% of global oil output. But IMF growth cut and renewed trade tension between US and Europe is putting pressure on oil prices.The pair hits high of 1.33597 and is currently trading around 1.33436.
On the lower side,near term support is around 1.3270 (38.2% fib) and any violation below will drag the pair to next level till 1.3250/1.3200/1.3130. Any break below 1.3130 confirms further weakness.
The near term resistance is around 1.3380 (trend line resistance) and any convincing break above targets 1.3420/1.3460.
It is good to sell on rallies around 1.3350-55 with SL around 1.3400 for the TP of 1.3200.
