FxWirePro: USD/CAD Trade Idea

• USD/CAD is consolidating in narrow range between 1.29139 and 1.28035 for the past 1- week. The Canadian dollar gained strength yesterday after better than expected Canada GDP data. It is currently trading around 1.28260. Canadian GDP data came at 0.4% compared to 0.1% decline previous month.
   
• Bank of Canada Governor Stephen Mr.Poloz said high levels of household debt poses growing risks to financial stability.
   
• WTI Crude oil prices shown a minor decline after EIA crude inventory data.US crude inventory jumped by 6.2 million barrels compared to forecast of 1 million barrels. Any convincing break below $67 targets $65. It is currently trading around $67.81.
   
• Technically near term resistance is around 1.2920 and any convincing break above targets 1.2965/1.3000. Major bullish continuation only above 1.300.
   
• On the lower side, near term support is around 1.2800 and any break below will drag the pair down till 1.2730/1.2680/1.2635.

It is good to sell below 1.2800 with SL around 1.2845 for the TP of 1.2725/1.2680.

Resistance

R1- 1.2920
 

R2 –1.2965
 

R3- 1.3000

Support               
 

S1- 1.2800
 

S2-1.2725
 

S3- 1.2680