FxWirePro: USD/CAD trades lower on strong crude oil price, good to sell on rallies

• USD/CAD has recovered mildly after hitting low of 1.2280. The pair jumped till 1.23915 on Jan 25th 2018 and is currently trading around 1.23515.
   
• Canadian dollar is trading strong due to air of optimism in NAFTA negotiations. It is expected to extend deeper till into 2018 mostly beyond the Presidential election in Mexico in July
   
• WTI crude oil price has jumped sharply till $66.63 on account of weak crude oil prices. The price jump also supported by declining US inventories for the 10 th week.  US crude inventories declined 1.1 million barrels and total inventories at 411.6 million barrels lowest since Feb 2015. It is currently trading around $64.59.
   
• Technically, major short term support is around 1.2280 and any break below will drag the pair till 1.2200.
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• On the higher side, near term major resistance is around 1.2435 and any break above will take the pair to next level till 1.2480/1.2530. Minor bullishness only above 1.2600.

It is good to sell on rallies around 1.2405-41 with SL around 1.2465 for the TP of 1.2280/1.2200