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FxWirePro: USDCAD hits 4-month low on broad-based US dollar selling, good to sell on rallies
Major support- 1.31189 (200- W MA)
USDCAD is trading weak for the past two consecutive weeks and lost more than 300 pips from high of 1.34324. The decline was mainly due to the broad-based US dollar selling after Fed policy. The Fed tone was dovish and kept the rooms open for rate cuts. In previous week Canadian economic data came mixed with a slight uptick in CPI and weaker than expected retail sales. The pair hits low of 1.31069 yesterday and is currently trading around 1.31309.
The oil prices are trading higher after the escalation of tension between the US and Iran. It has jumped more than $15 and is facing strong resistance around $60.It is currently trading around $58.71.
On the flip side, near term support is around 1.31180 and any weekly close below this level confirms bearish continuation and a dip till 1.30680/1.3000.
The near term resistance is around 1.31686 (61.8% fib) and any violation above will take the pair to 1.3230. Any minor trend reversal only above 1.32300.
It is good to sell on rallies around 1.3170-75 with SL around 1.32300 for the TP of 1.30680/1.3000.