FxWirePro: USD/CAD trades lower on rising crude oil, market eyes BOC rate announcement

• USD/CAD continuing its weakness for third consecutive week on account of rising oil price and optimism on NAFTA outlook. The pair hits low of 1.25274 and shown a minor recovery. Market eyes BOC rate announcement today for further direction.
• BOC is expected to keep its interest rates unchanged at 1.25%. A quarter point hike is expected in the near term mostly in May or June. But Canadian economy has grown well short of BOC expectations of 2.5% and trade war between US and China would hurt international trade.  
   
• WTI Crude oil prices jumped more than 9% in this week and hits high of $67.73 on account of tension in Middle East and shrinking global oil inventories. It is currently trading around $67.40.
   
• Technically near term resistance is around 1.2625 and any break above targets 1.26505 (38.2% fibo)/1.2700/1.27200. Overall bullish continuation only above 1.3125.
   
• On the lower side, near term support is around 1.2520 and any break below will drag the pair down till 1.2500/1.24500.

It is good to buy on dips around 1.2550 with SL around 1.2515 for the TP of 1.2625/1.2660.