USD/CAD upside capped by 38.2% fibo, good to sell on rallies
USD/CAD has formed a bottom at 1.20613 on Sep 8th 2017 and recovered well from that level. The pair upside is limited due to strong oil prices. The pair jumped till 1.23376 and is currently trading around 1.22687.
US oil rose yesterday after Iraq oil minister said OPEC and other crude producers were planning to extend oil production. The commodity jumped till $50.40 and is currently trading around $50.25. Any convincing break above $50.50 will take the commodity to next level till $51.97.
On the higher side, near term resistance is around 1.23400 (38.2% retracement of 1.27782 and 1.20613) and any break above will take the pair till 1.24250 (34- day EMA). The pair should break above 1.2425 for minor bearish invalidation.
The near term support is around 1.2250 and any break below will drag the pair down till 1.2165/1.20600.
It is good to sell on rallies around 1.2355-1.2360 with SL around 1.2425 for the TP of 1.22.
US oil rose yesterday after Iraq oil minister said OPEC and other crude producers were planning to extend oil production. The commodity jumped till $50.40 and is currently trading around $50.25. Any convincing break above $50.50 will take the commodity to next level till $51.97.
On the higher side, near term resistance is around 1.23400 (38.2% retracement of 1.27782 and 1.20613) and any break above will take the pair till 1.24250 (34- day EMA). The pair should break above 1.2425 for minor bearish invalidation.
The near term support is around 1.2250 and any break below will drag the pair down till 1.2165/1.20600.
It is good to sell on rallies around 1.2355-1.2360 with SL around 1.2425 for the TP of 1.22.