FxWirePro: USDCAD hits 5- month low, good to sell on rallies
Ichimoku analysis (Weekly chart)
USDCAD is trading weak for the 4th consecutive week and lost more than 400 pips on broad-based US dollar selling and strong crude oil prices. The Canadian dollar is gaining against for the fourth month. The pair has broken primary support 1.33150 low made on Jun 8th and hits an intraday low of 1.3480 and currently trading around 1.33658.
WTI crude oil is trading extremely higher and broken significant trend line resistance after Lebanon bomb blast. Any break above $42.50 confirms bullish continuation and a jump till $44.95 likely.
Technically, the pair faces near term support at 1.3250. Any violation below targets 1.3200/1.3160. The near term resistance is at 1.3320, an indicative break beyond will take to the next level till 1.33380/1.3435.
It is good to sell on rallies around 1.3278-80 with SL around 1.3320 for the TP of 1.3320.