- USD/CAD has declined sharply more than 100 pips on account of good jump in oil prices and business survey from Bank of Canada supports expectations of interest rate hike. The pair hits low of 1.26740 at the time of writing. ”Business sentiment continues to be positive, supported by healthy sales prospects”. The report confirms one more rate hike in the coming months. It is currently trading around 1.26630.
- Market eyes US PPI data which is to be released today for further direction. Oil price jumped almost more than $2.5 from previous week low of $61.79 as US- China trade tensions ease.
- Technically near term resistance is around 1.27200 and any break above targets 1.2748 (50- day MA)/12820/1.28475. Overall bullish continuation only above 1.3125.
- On the lower side, near term support is around 1.2660 and any break below will drag the pair down till 1.2630/1.2600/1.2545.
It is good to sell on rallies around 1.2725-30 with SL around 1.2780 for the TP of 1.2600.
Resistance
R1-1.2725
R2 – 1.2755
R3- 1.2820
Support
S1-1.2660
S2- 1.2600
S3- 1.2550
