FxWirePro: USD/CAD upside capped by 50% fibo, good to sell on rallies

• USD/CAD has declined sharply after showing a pullback till 1.23905 on Sep 20th 2017. The pair pared its gain after better than expected Canadian whole sale trade released yesterday. The pair upside is capped by 50% retracement and any further bullishness can be seen only above that level. It is currently trading around 1.23025.
   
• Canadian CPI m-m came at 0.1% compared to forecast of 0.2% and retail sales came slightly weaker than expected at 0.2% compared to forecast of 0.4%.
   
• US oil rose declined slightly after hitting high of $51.09 on Sep 20th 2017.  Market awaits OPEC meeting on Friday for further direction. They will discuss the possible extension of 1.8 million barrels per day. Any convincing break above $51.10 will take the commodity to next level till $51.97.
   
• On the higher side, near term resistance is around 1.23400 (38.2% retracement of 1.27782 and 1.20613) and any break above will take the pair till 1.24285 (50% fibo). The pair should break above 1.2425 for minor bearish invalidation.
   
• The near term support is around 1.2250 and any break below will drag the pair down till 1.2165/1.20600.

It is good to sell on rallies around 1.2355-1.2360 with SL around 1.2425 for the TP of 1.22.