FxWirePro: USD/CAD trade Idea

• USD/CAD declined almost 150 pips yesterday after upbeat comments from BOC governor Poloz. The dipped till 1.27136 and is currently trading around 1.27703.
   
• BOC Governor commented that Canadian economy has done well in the 2017 and it is now close to reaching full potential. His comments confirms that rate hike to happen in the first quarter of 2018.
   
• Crude oil formed a bottom at $56.07 and has shown a minor jump from that level. The key pipeline Forties closure is supporting the oil prices which carries 40% of UK’S North Sea.
   
• Technically, near term support is around 1.2712 (55- day EMA) and any break below will drag the pair till 1.2660/1.2600. Short term weakness only below 1.26000.
   
• On the higher side, near term major resistance is around 1.2825 (61.8% retracement 1.28921 and 1.27136) and any break above will take the pair to next level till 1.2880/1.12925.bullish continuation can be seen only above 1.2925.

It is good to sell on rallies around 1.278-85 with SL around 1.2825 for the TP of 1.2705/1.2660.

Resistance
 

R1- 1.2825
 

R2 -1.2890
 

R3-1.2928
 

Support               
 

S1-1.2745
 

S2- 1.2705
 

S3-1.2660