USD/CAD has shown a minor jump after forming a temporary bottom at 1.23622. The major jump was mainly due to BOC interest rate hike by BOC and rising crude oil prices.The pair’s downside capped due to uncertainty about t…
USD/CAD has shown a minor jump after forming a temporary bottom at 1.23622. The major jump was mainly due to BOC interest rate hike by BOC and rising crude oil prices.The pair’s downside capped due to uncertainty about the future of NAFTA. The pair jumped till 1.2508 and is currently trading around 1.24550.
The wholesale sales data released today was slightly weaker that expected. It has slowed to 0.7% compared to forecast of 1.0%.
Crude oil price has declining slightly on account of US government shutdown.But US drilling activity has slowed down by 5 to 747 in the week to Jan 19th . It is curretly trading around $63.26.
Technically, major short term support is around 1.2435 and any break below will drag the pair till 1.23550. Short term bullish invalidation below 1.23550.
On the higher side, near term major resistance is around 1.26000 and any break above will take the pair to next level till 1.2638 (daily Kijun-Sen)/1.27070 (61.8% retracement). Short term bearish invalidation only above 1.2925. The minor resistance is around 1.2495 (10- day MA).
It is good to sell on rallies around 1.2525-30 with SL around 1.2600 for the TP of 1.2350/1.2300.
