FxWirePro: USDCAD Short term Outlook

USDCAD was one of the worst performers this year and lost more than 4.5% from a temporary top around 1.36461. The decline was mainly due to policy divergence between the US Fed and BOC, surging crude oil prices. US Fed has slashed rates three times this year while BOC kept its rates unchanged at 1.75% in 2019. The pair hits low of 1.30159 and is currently trading around 1.31628.

WTI crude soared sharply this year and jumped more than 50% from low of $42.34 on easing US-China trade tensions and extended production cuts by OPEC. It hits high of $66.59 and is currently trading around $60.60.

Technically, primary support to be watched is 1.3100 and any violation beneath will drag the pair to the next level till 1.3040/1.3015. Any break under 1.3000 confirms major bearish continuation.

The significant resistance is around 1.3385, violation beyond targets 1.3500/1.36650. The minor levels to be watched are 1.3235/1.3320.

It is good to sell on rallies around 1.3275-80 with SL around 1.3385 for the TP of 1.3000.