FxWirePro:USD/CAD Trade Idea

• Major resistance – 1.26100
   
• The pair has declined slightly after hitting high of 1.25980 yesterday on account of steady crude oil prices and positive economic data. Short term trend is still as long as resistance 1.26910 holds.
   
• Crude oil prices jumped sharply after better than expected crude oil inventory data. The inventory has fallen for eighth consecutive week and it has declined by 3.3 million bbls in the week ending Aug down 13.5% form the record level. The tropical depression Harvey which is expected to  strengthen as category hurricane to affect the production in Gulf of Mexico.
   
• Loonie hits low of 1.25370 yesterday and is currently trading around 1.25480.
   
• On the lower side, near term support is around 1.2550 and any convincing break below will drag the pair down till 1.2500/1.2430.
   
• The near term resistance is around 1.2610 and any break above will take the pair till 1.2650/1.2690.
  
  It is good to sell on rallies around 1.2575-1.2580 with SL around 1.2625 for the TP of 1.2500/1.2435.

Resistance

R1- 1.2610

R2 1.2655

R3- 1.2700

Support

S1-1.2520

S2-1.2485

S3-1.2430