FxWirepro: USDCAD hits 2 week high on slightly weaker than expected US CPI and broad based dollar selling, good to sell on rallies

USDCAD is trading weak and hits 2 week low as investor are optimistic on trade talks between US and Canada. New housing price index data at 0.1% gained for second staright month. Buy US inflation came at slightly weaker than expected. CPI mom came at 0.2% in the month of Aug and annual core CPI came at 2.2% compared to forecast of 2.4%. The pair hits low of 1.29765 and is currently trading around 1.29880. 

US crude oil price has jumped more than $3 on account of decline in US crude inventory and Hurricane Florence. US crude inventory fell by 5.3 million barrels compared to forecast of 2.7 million barrels. US oil pared some of its gains made yesterday and is currently trading around $69.26.

On the higher side, any break above 1.3038 (100- day MA) will take the pair to next level till 1.30875/1.3135. 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.