- The USD/CAD pair inched higher on Tuesday as the Canadian dollar dipped as oil prices fell and data showed slower Chinese and German trade growth.
- U.S. crude prices were down 0.63 percent at $49.08 a barrel as high oil production in many parts of the world offset news of lower crude supplies from Saudi Arabia.
- Chinese and German trade data disappointed, suggesting global demand may be starting to flag just as central banks contemplate scaling back stimulus.
- The Canadian dollar was last trading down at C$1.2677 to the greenback, or 78.87 U.S. cents.
- The ongoing upside is set to continue for this pair as the support level at 1.2610 is likely to act as strong barrier to the bears and push the pair towards higher levels.
- The immediate support can be seen at 1.2658, break below this level will expose the pair to next support level at 1.2610.
- Major resistance can be seen at 1.2767, break above this level will expose it towards 1.2800 levels.|
Resistance Levels
R1: 1.2708 (38.2% Retracement level)
R2: 1.2767 (23.6% Retracement level)
R3: 1.2800 (Psychological levels)
Support Levels
S1: 1.2658 (50% Retracement level)
S2: 1.2610 (61.8% Retracement level)
S3: 1.2556 (Aug 4th lows)
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