FxWirePro: USD/CAD Trade Idea

• CAD hits four month high versus U.S dollar on account more hawkish comment by BOC governor on interest rates. The pair declined till 1.30058 at the time of writing and is currently 1.30270.
   
• BOC Governor Poloz said in an interview on CNBC that economy has shown strong growth at first three months of 2017 and getting closer to full potential.
•  WTI crude oil jumped sharply after hitting a 10 month low of $42 on account of encouraging oil inventory data. US Crude oil data showed that the amount of crude in storage rose by 1 million barrels compared to forecast of 2.1 million barrels decline but gasoline inventories fell by 894000 barrels vs 583000.
   
• Technically the pair has formed bullish divergence in MACD  and RSI in the four hours chart and major bottom is around 1.2965. Short term bearish invalidation only below 1.2965.
   
• On the higher side, minor bullishness can be seen only above 1.3350 level. Any violation above that level will take the pair till 1.3430/1.3500. The minor resistance is around 1.30890 (23.6% fibo)/1.31650 (support turned in to resistance.
  
  It is good to buy on dips around 1.3005-1.3010 with SL around 1.2965 for the TP of 1.3080/1.3150.

Resistance
                   

R1-1.3000
                               

R2 -1.2960
 

R3- 1.2900
 

Support   
 

S1-1.3080
 

S2-1.3160

S3-1.3200