FxWirePro: USD/CAD retreats on recovering oil price, good to sell on rallies
Canadian dollar recovered sharply from the 14 –month low on account of bounce in the crude oil prices. WTI Crude oil recovered sharply after hitting the low of $43.73 on expectations of more production cuts. Saudi Arabia…
Canadian dollar recovered sharply from the 14 –month low on account of bounce in the crude oil prices.
WTI Crude oil recovered sharply after hitting the low of $43.73 on expectations of more production cuts. Saudi Arabia’s energy minister said OPEC led production cut will be extended to cover all of 2017.
USD/CAD formed a temporary top around 1.37935 on Friday and started to decline from that level. The pair also broken trend line support 1.3680 (trend line joining 1.32620 and 1.34100) and declined till 1.36393.The major support is around 1.3530 (low made on Apr 27th 2017) and any break confirms that jump from 1.24607 comes to an end at 1.37935. Any break below will drag the pair down till 1.34100/1.32800 (38.2% retracement of 1.2460 and 1.37935).
The near term resistance is around 1.3700 and any break above will take the pair till 1.3750/1.3800. Any close above 1.3838 (61.8% fibo) confirms bullish continuation.
It is good to sell on rallies around 1.3685-1.3690 with SL around 1.3755 for the TP of 1.3530.
