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FxWirePro: USD/CAD breaks major support 1.322, decline till 1.2968 likely

  • Canadian dollar continued to strengthen against U.S dollar after hawkish comment from BOC Deputy Governor.  Loonie declined sharply and has broken major support 1.3220. It is currently trading around 1.32246.
     
  • Canadian dollar hits four month high against U.S dollar after hawkish tone from Deputy Governor C.Willkins. BOC is encouraged by a broadening of economic strength and more than 70% of Canadian industries are expanding. The hawkish tone of BOC confirms rate hike earlier than expected in Q3 2017 (instead of Q1 2018).
     
  • USD/CAD broken the major support 1.3220 and any break below confirms the top formed at 1.37935 and a decline till 1.2968 (Jan 31st 2017 low) likely.
     
  • On the higher side, near major resistance is around 1.3325 (200- day MA) and any break above confirms minor bullishness and a jump till 1.3380/1.3480/1.3570 is likely.

It is good to sell on rallies around 1.3300 with SL around 1.3380 for the TP of 1.3220/1.3000/1.2968.

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