• FxWirePro: USD/CAD trades lower on positive Nafta talks, good to sell on rallies

    Source: FxWire Pro - Technicals / 24 Jan 2018 06:20:46   Eastern Standard Time

    • USD/CAD has declined sharply after recovering till 1.250. The pair broken major support of 1.23550 on Jan 5th 2018 low and declined till 1.23478. It is currently trading around 1.23515.
       
    • The good jump in Canadian dollar happened after Trump said talks to renegotiate NAFTA were doing well. The sixth and almost last round of talks on NAFTA among Canada, the United States and Mexico has started in Monreal from yesterday to next Monday. 
       
    • Crude oil price has shown an almost $1.5 jump on declining US drilling activity. US drilling has slightly declined by to 747 in the week to Jan 19th . It is currently trading around $64.59.
       
    • Technically, major short term support is around 1.23500 and any break below will drag the pair till 1.2300/1.2270. Short term bullish invalidation seen below 1.2350.
    • On the higher side, near term major resistance is around 1.2435 and any break above will take the pair to next level till 1.2480/1.2530. Minor bullishness only above 1.2600.

    It is good to sell on rallies around 1.2365-70 with SL around 1.2435 for the TP of 1.2280/1.2200