FxWirePro: USDCAD hits 8-1/2 month low, good to sell on rallies

Major resistance 1.31500

Major support - 1.3000

USDCAD has shown a minor jump till 1.30916 after better than expected US CPI data.US CPI came much better than expected with Core CPI m/m at 0.3% compared to the forecast of 0.2% the highest level since Jan 2018. US dollar index sell-off got halted after US CPI data. It hits a low of 96.80 and shown a minor recovery till 97.09. The economic data to be released today is US PPI which will have a minor impact on the US dollar.

The crude oil prices hit 2-month high on upbeat global cues and hurricane risks in the Gulf of Mexico. US EIA report shows that inventory draws down is at -9.3mln compared to estimate -1.9M.

 Technically, on the flip side near term support is around 1.3000 and any violation below will drag the pair to the next level till 1.2965/1.2920 level.

The major trend reversal only above 1.31500 and minor resistance is around 1.3060/1.3090.

It is good to sell on rallies around 1.3075-80 with SL around 1.3125 for the TP of 1.2965.