FxWirePro: USD/CAD trade lower on strong crude oil price, good to sell on rallies
USDCAD has broken major trend line support yesterday after US fed monetary policy meeting and declined till 1.28298. The decline pair has formed a temporary top around 1.31245 and dipped almost more than 300 pips from th…
USDCAD has broken major trend line support yesterday after US fed monetary policy meeting and declined till 1.28298. The decline pair has formed a temporary top around 1.31245 and dipped almost more than 300 pips from that level. The main reason for slight in Canadian dollar was due to good jump in crude oil prices. But downside is limited due to policy divergence between Fed and BOC. It is currently trading around 1.28695.
The fed hiked interest rate by 25bpbs and dot plot shows that only two more hikes in 2018. The profile for 2019 and particularly 2020 is expected to have more rate hikes. Crude oil jumped almost more than 5% this week on account of Middle East tensions and healthy demand.
The near term support is around 1.2800 and any break below will drag the pair to next level till 1.2760/1.2700 level.
On the higher side, near term resistance is around 1.2920 and any break above will take the pair to next level till 1.2960/1.3000.Overall bullish continuation only above 1.31250.
It is good to sell on rallies around 1.2900-05 with SL around 1.2955 for the TP of 1.2800.
