FxWirePro: USDCAD trades below 55- day EMA, dip till 1.3090 likely

USDCAD continues to trade lower for 5th consecutive days on slightly hawkish BOC and strong Canadian jobs data. The Canadian economy has added 81000 jobs in Aug compared to forecast of 18.9k and unemployment rate at steady 5.7% while US NFP came at slightly weaker than the estimate 164K at 130000. The pair hits an intraday low of 1.31581 and is currently trading around 1.31617.  DXY is showing weakness after showing a minor jump till 98.51 and any break below 98 confirms minor weakness.

Crude oil prices have recovered sharply after hitting a low of $54.81 and jumped till $57.26 on easing trade tension will increase demand for crude oil prices. Any break above $57.50 confirms major bullishness. It is currently trading around $56.99.

On the flip side, major support is around 1.3140 and any violation below targets 1.3090/1.3015.

The near term resistance is around 1.3235 and any convincing break above will take the pair to next level till 1.3265/1.3300. Any break above 1.3380 high made on Sep 3rd 209 confirms bullish continuation.

It is good to sell on rallies around 1.3178-80 with SL around 1.3235 for the TP of 1.3095.