FxWirePro: USDCAD hits multi-month low on better than expected Canadian GDP, good to sell on rallies

USDCAD is trading weak and lost more than 50 pips from yesterday's high. The pair hits 5month after the release of Canadian GDP data Canadian Apr GDP came at 0.3% compared to forecast of 0.2% and y/y reading came at 1.5% vs 1.6% expected. US May PCE core came at 1.6% y/y vs 1.5% expected. The pair hits low of 1.30684 at the time of writing and is currently trading around 1.30849.

The oil prices are trading higher after the escalation of tension between the US and Iran. It has jumped more than $15 and is facing strong resistance around $60.It is currently trading around $59.54.

On the flip side, near term support is around 1.30684 low made on Jan 2019 and any break below this level confirms bearish continuation and a dip till 1.3000/1.2920.

The near term resistance is around 1.3120 and any violation above will take the pair to 1.31685/1.3230. Any minor trend reversal only above 1.32300.

It is good to sell on rallies around 1.3120-225 with SL around 1.3170 for the TP of 1.3000/1.2920.