Major support - 13020
USDCAD continues to trade lower for 2nd consecutive week and declined more than 250 pips on account of broad-based dollar selling. DXY was trading weak due to dismal US economic data such as retail sales, ISM manufacturing index. This has increased the chance of a rate cut by the Fed this month's meeting. The pair hits low of 1.30525 and is currently trading around 1.30609.
WTI crude oil jumped sharply more than $2.5 after the release of Crude oil inventory data. It has shown an inventory draw of -1.7M compared to an estimate of 2.5M.
On the flip side, major support is around 1.3020 and any violation below will drag the pair down till 1.3000/1.2960.
The near term resistance is around 1.3100 and any break above will take the pair to next level till 1.3135/1.3180.
It is good to sell on rallies around 1.3078-80 with SL around 1.3130 for the TP of 1.2965.
