• The USD/CAD pair inched higher in the US session as the greenback made broad-based gain after solid U.S. manufacturing activity reinforced expectations that Federal Reserve will raise interest rates in December.
   
• Institute for Supply Management (ISM) survey on Monday showed on the nation's manufacturing sector returned to expansion in September.
   
• The currency pair is trading around 1.3160 levels and it is set to advance towards 1.3200 and 1.3280 in the short term.
   
• To the upside, the strong resistance can be seen at 1.3280, a break above will take the pair towards next resistance level at 1.3352.
   
• To the downside immediate support can be seen at 1.3100 levels, a break below will open the door towards next level at 1.3044.
  
  Resistance Levels
  
  R1: 1.3215 (38.2% Retracement level)
  
  R2: 1.3280 (Sep 27th high)
  
  R3: 1.3352 (23.6% Retracement level)
  
  Support Levels
  
  S1: 1.3100 (50% Retracement level)
  
  S2: 1.3044 (Sep 29th lows)
  
  S3: 1.2992 (61.8% Retracement level)