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

• USD/CAD has declined sharply after breaking major support at 1.2660. The pair hits low of 1.2605 and is currently trading around 1.26122. The main reason for the rally in Canadian dollar is due to strong jump in crude oil price.  US oil prices hits 2-1/2 year high at $59.98 and is consolidating around that level. It is currently trading around 1.26055.
   
• US crude oil prices hits 2-1/2 year high at $60 on reports of pipeline explosions in Libya which is expected to affect 90000 barrels a day production. Oil prices hits high of $ 59.98 and is currently trading around 59.81.
   
• Technically, major short term support is around 1.2600 and any break below will drag the pair till 1.2500/1.24300. Short term weakness only below 1.2430. Overall bullish invalidation only below 1.2060.
   
• On the higher side, near term major resistance is around 1.2680 (23.6% fibo) and any break above will take the pair to next level till 1.2759 (50- day MA)/1.2805. Short term bearish invalidation only above 1.2925.

It is good to sell on rallies around 1.2640-45 with SL around 1.2685 for the TP of 1.2535/1.2435.