Sell on a level breakthrough of 1.2714 with 1.2650 target. Stop loss = 1.2764.
Reason for the trading strategy
The Loonie strengthened against the background of a recovery in prices for WTI crude to the 53.5 dollars per barrel mark. Market participants believe that the imbalance between supply and demand for oil in 2016 will be reduced, even if Iran increases its oil production by 1.1 million barrels per day. Firstly, the Iranian oil is going to compete with the US oil, which is produced by the shale oil companies. Secondly, oil consumption in China and India is expected to increase in 2016 .