USD/CAD has strongly inched higher breaking the psychological barrier at 1.3800 as the oil-correlated Canadian weakened further on Tuesday as oil prices dipped after oil producers Russia and Saudi Arabia dashed expectations of immediate supply cut .
- The ongoing upside is set to continue for the pair as the Canadian dollar is weaker across board against most of the major pairs. Any decline is expected to be limited around 1.3840 as the support level at 1.3778 is set to hold the bears from falling further below.
- Technically in the 1 hour chart the 55, 30 and 20 MA are turning upside , the RSI is pointing towards upside at 68.
- To the upside, the strong resistance can be seen at 1.4000, a break above this level would take the pair all the way towards 1.4100 levels.
- To the downside strong support can be seen 1.3778, a break below this level will take the pair to next level at 1.3671.
Recommendation: Go long above 1.3840 targets 1.3950, 1. 1.4150, SL 1.3700
Resistance Levels
R1: 1.3893 (50% Retracement level)
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R2: 1.4000 (Psychological levels)
R3: 1.4100 (Feb 4th high)
Support Levels
S1: 1.3778 (61.8% Retracement level)
S2: 1.3671 (50% Retracement level)
S3: 1.3628 (Feb 4th lows)
