• The USD/CAD pair declined in the US session hitting as low as 1.2829 after U.S. services sector index for the month of August reinforced expectations the Federal Reserve will not raise interest rates when it meets next week.
   
• Oil prices declined in choppy trading, high on receding hopes for imminent action to tackle a global supply glut.
   
• The currency pair is trading around 1.2846 levels and it is set to decline towards 1.2800 and 1.2750 in the short term.
   
• To the upside, the strong resistance can be seen at 1.2960, a break above will take the pair towards next resistance level at 1.3000.
   
• To the downside immediate support can be seen at 1.2840 levels, a break below will open the door towards next level at 1.2766.
  
  Resistance Levels
  
  R1: 1.2902 (50% Retracement level)
  
  R2: 1.2960 (61.8% Retracement level)
  
  R3: 1.3000 (Psychological levels)
  
  Support Levels
  
  S1: 1.2840 (38.2% Retracement level)
  
  S2: 1.2766 (23.6% Retracement level)
  
  S3: 1.2700 (June 24th lows)