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FxWirePro: USDCAD trades weak on surging Canadian yield, good to sell on rallies

FxWirePro: USDCAD trades weak on surging Canadian yield, good to sell on rallies  

USDCAD continues to trade weak for the past three consecutive weeks. The strength in the Canadian dollar was mainly due to a jump in Canada's 2-year yield and bullish crude oil price. The gap between Canadian 2-year and US 2-year yields rose nearly 41 basis points. The overall trend is still bearish as long as resistance 1.260 holds.

WTI crude continues to trade higher and holds above $80 on global oil demand. A jump to $85 is possible.

On the flip side, immediate support stands at 1.2430 and any indicative break below that level will drag the pair down till 1.2370/1.2325. 

The pair's near-term resistance is around 1.2510, any breach above targets 1.2560/1.2600.

It is good to sell on rallies around 1.2508-10 with SL around 1.2560 for the TP of 1.2380.
 

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