FxWirePro: USD/CAD trades lower on positive Canada economic data and rising crude oil, good to sell on rallies
USD/CAD has declined more than 170 pips from high of 1.2925 made on May 15th 2018. The pair has shown a major weakness yesterday after better than expected Canadian Factory sales data. Canadian factory sales came at 1.4%…
USD/CAD has declined more than 170 pips from high of 1.2925 made on May 15th 2018. The pair has shown a major weakness yesterday after better than expected Canadian Factory sales data. Canadian factory sales came at 1.4% in Mar surpassing the 1.2% gain and Feb data was revised upwardly to 2.7% from 1.9%.Loonie hits low of 1.27495 yesterday and is currently trading around 1.27654.
WTI Crude oil prices has shown a good jump after better than expected US crude inventories. The Energy Information Administration (EIA) shows that inventory declined by -1.4 million barrels compared to forecast of -1.1M. It hits high of $71.86 and is currently trading around $71.68.
Technically near term resistance is around 1.2805 and any convincing break above targets 1.2860 (61.8% fibo)/1.925/1.2965/1.3000. Major bullish continuation only above 1.3125.
On the lower side, near term support is around 1.2710 (61.8% fibo) and any convincing break below will drag the pair down till 1.2660/1.2600.
It is good sell on rallies around 1.2795-1.2800 with SL around 1.2855 for the TP of 1.2715.
