FxWirePro: USD/CAD Trade Idea

USD/CAD trading lower for 3rd consecutive day and lost nearly 400p pips from high 1.36648 level. The Canadian dollar was trading higher against all majors after better than expected Canadian employment data and rising oil prices. Markets eye Bank of Canada policy which is to be released tomorrow . The central bank is expected keep rates on hold on weak oil price and weak headline inflation. Crude oil prices has jumped nearly 15% from low of $50.14 on easing trade talks between US and China and OPEC cuts. It hits high of $58.98 and is currently trading around $58.49.

On the lower side, near term major support is around 1.3250 and any violation below confirm further weakness and a dip till 1.3150/1.3090 is possible.

The near term major resistance is 1.33650 and any break above targets 1.3425/1.3475 (20-day MA)/1.3520.

It is good to sell on rallies around 1.3400-05 with SL around 1.3500 for the TP of 1.3160.

Resistance

R1- 1.3365

R2 - 1.3420

R3- 1.3475

Support               

S1- 1.3250

S2- 1.3150

S3- 1.3090