USD/CAD pair has begun the week rebounding from 38.2 fib levels to trade around 1.3966 levels. The pair hit new high (1.4000) on Friday after softer than expected domestic data sending the currency pair to more than 11-year high.
- The ongoing bullishness is set to continue, as stronger dollar across the board and plummeting oil prices is set to put further pressure on Canadian dollar in the coming days.
- Further decline for the pair is expected to be limited as the support level at 1.3870 is set to hold the bears from falling further below.
- To the upside, the strong resistance can be seen at 1.4000, a break above this level would take the pair towards next resistance level at 1.4040.
- To the downside immediate support can be seen 1.3919, a break below this level will open the door towards next level at 1.3870.
Recommendation: Go long around 1.3900, targets 1.4000 1.4060, SL 1.3850
Resistance Levels
- R1: 1.3973 (23.6% Retracement level)
- R2: 1.4000 (Psychological level)
- R3: 1.4040
Support Levels
- S1: 1.3919 (38.2% Retracement level)
- S2: 1.3870 (50% Retracement level)
- S3: 1.3825 (61.8% Retracement level)
