USD/CAD was trading weak for 4th consecutive day and lost more than 100 pips on strong surge in crude oil price.The pair has formed a bottom around 1.30685 and shown good jump till 1.34667 on broad based US dollar buying and more dovish Bank of Canada.The pair hits low of 1.328 and is currently trading around 1.33262.
Crude oil jumped sharply from low of $54.50 and hits fresh 2019 high. The jump was mainly due to unexpected drop in crude inventories and US production is supporting crude oil prices. It is currently trading around $58.13.
On the higher side, near term resistance is around 1.3340 and any convincing break above will take the pair to next level till 1.3380/1.3466. Any violation above 1.3470 confirms further bullishness.
The near term support is around 1.3278 (100- day MA) and any break below will drag the pair till 1.3230/1.3173 (200- day MA)/1.3100.
It is good to sell on rallies around 1.3380 with SL around 1.3450 for the TP of 1.3110.