USD/CAD breaks major support 1.2600, dip till 1.2430 likely
USD/CAD has declined sharply after breaking major support at 1.2600. The pair hits low of 1.2550 and is currently trading around 1.2555. The main reason for the rally in Canadian dollar is due to strong jump in crude oil price. US oil prices hits 2-1/2 year high at $59.98 and is consolidating around that level. The pair is currently trading around 1.2550.
US crude oil prices hits highest level since mid- 2015 on unexpected decline in US oil production. US production has dropped for the first time in 2 months. US Oil prices broke major resistance at $60 and is currently trading around $60.22.
Technically, major short term support is around 1.255 and any break below will drag the pair till 1.2500 (200- W EMA)/1.24300. Short term weakness only below 1.2430. Overall bullish invalidation only below 1.2060.
On the higher side, near term major resistance is around 1.2640 (23.6% fibo) and any break above will take the pair to next level till 1.2725 (55- day EMA)/1.2760/1.2805. Short term bearish invalidation only above 1.2925.
It is good to sell on rallies around 1.2600 with SL around 1.2645 for the TP of 1.2535/1.2435.
US crude oil prices hits highest level since mid- 2015 on unexpected decline in US oil production. US production has dropped for the first time in 2 months. US Oil prices broke major resistance at $60 and is currently trading around $60.22.
Technically, major short term support is around 1.255 and any break below will drag the pair till 1.2500 (200- W EMA)/1.24300. Short term weakness only below 1.2430. Overall bullish invalidation only below 1.2060.
On the higher side, near term major resistance is around 1.2640 (23.6% fibo) and any break above will take the pair to next level till 1.2725 (55- day EMA)/1.2760/1.2805. Short term bearish invalidation only above 1.2925.
It is good to sell on rallies around 1.2600 with SL around 1.2645 for the TP of 1.2535/1.2435.
