FxWirePro: USDCAD hits 1- week low on improved Canadian trade deficit, good to sell on rallies

Major Support -1.3280

USDCAD is trading weak and lost more than 100 pips from yesterday’s high of 1.34029. Canadian trade data came slightly better than expected. Trade deficit slightly improved -$2.90B vs -$3.25B expected. Canada CPI came in line with expectations 0.7% m/m vs forecast of 0.7% The rising crude oil prices also supporting Canadian dollar. WTI crude oil rose more than $1.5 on Chinese demand and decline in US crude inventories. The data form American Petroleum Institute (API) shows that US crude oil inventories declined by 3.1 million barrels compared with forecast for the increase of 1.7 million barrels.

On the lower side,, near term support is around 1.3280 and any break below will drag the pair to next level 1.3230/1.3199 (200- day MA).

The near term resistance is around 1.3340 and break above targets 1.3380/1.3405.

It is good to sell on rallies around 1.3300 with SL around 1.3340 for the TP of 1.3199