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FxWirePro: USDCAD trades lower after strong Canada GDP data good to sell on rallies

USDCAD has lost more than 70 pips after release of Canada GDP data.Canada GDP for the month of Jan came at 0.3% compared to forecast of 0.0% and 1.6% y/y vs 1.3%.It hits low of 1.33543 and is currently trading around 1.33475.

 

WTI crude has gained more than $2 and hits fresh 4-month high on US and China trade optimism and global market recovery.It hits high of $60.49 and is currently trading around $60.47.

 

On the higher side major resistance is around 1.34674 high made on Mar 7th and any convincing break above will take the pair to next level till 1.3500/1.3600. It should break above 1.3660 for bullish continuation.

 

The near term support is around 1.3350 and any violation below will drag the pair to next level till 1.3320/1.3250.Any violation below 1.3250 confirms minor weakness.

 

It is good to sell on rallies around 1.3365-70 with SL around 1.3400 for the TP of 1.3255.

 

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