Crude oil declined sharply almost 5% yesterday after weaker than expected inventory data. The higher than expected buildup of 3.3 million barrels compared to forecast of 3.5 million barrels drop in inventory. Crude oil prices dropped till $45.63 from the previous close of $47.95.
USD/CAD is facing strong resistance around 1.35469 (Jun 2nd 2017 high) and any break above will take the pair till 1.35820 (200 – 4H MA)/1.36377 ( of 1.37905 and 1.33935).
On the lower side, minor support is around 1.3480 (21- 4 H MA) and any break below will drag the pair till 1.3410/1.3380 (May 25th 2017).
It is good to buy on dips around 1.35000 with SL around 1.34450 for the TP of 1.3635/1.3680.