FxWirepro: USD/CAD dips below 1.3000 level on sudden surge in oil prices, good to sell on rallies

USDCAD is trading weak after a minor recovery of nearly 90 pips from the low of 1.29765. The slight strength in Canadian dollar is due to surge in US oil and optimistic NAFTA trade talks. Canadian manufacturing sales came at 0.9% slightly lower from forecast of 1.0%.The pair lost more than 60 pips after the data. The pair hits low of 1.29950 and is currently trading around 1.30019. 

US crude oil price has jumped more than $1.5 as OPEC not prepared to boost production million barrels. The major resistance is around $71.50 and any break above targets further bullishness.

On the higher side, any break above 1.3080 (50- day MA) will take the pair to next level till 1.3135/1.3175. Short term trend reversal only above 1.32300.

The near term major support is around 1.2965 and any violation below target 1.2900/1.2865.

It is good to sell on rallies around 1.3038-40 with SL around 1.3090 for the TP of 1.2965/1.2865.