• The USD/CAD pair inched higher at the beginning of US session on Thursday as Canadian dollar was pressured following ratings downgrade for the country's major banks offsetting higher oil prices.
   
• Moody's Investor Service on Wednesday downgraded the long-term ratings for six Canadian banks, pointing to rising domestic consumer debt and the country's elevated housing prices that leaves lenders more vulnerable to a slowdown in the Canadian economy.
   
• Oil prices rose after U.S. fuel inventories declined and Saudi Arabia cut supplies of crude to Asia by more than expected.
   
• The currency pair is trading around 1.3737 levels and it is set to advance further towards 1.3770 and 1.3820 in the short term.
   
• To the upside, the strong resistance can be seen at 1.3800, a break above will take the pair towards next resistance level at 1.3840.
   
• To the downside immediate support can be seen at 1.3694 levels, a break below will open the door towards next level at 1.3648.
  
  Resistance Levels
  
  R1: 1.3767 (50% Retracement level)
  
  R2: 1.3800 (Psychological levels)
  
  R3: 1.3840 (38.2% Retracement level)
  
  Support Levels
  
  S1: 1.3694 (61.8% Retracement level)
  
  S2: 1.3648 (Daily lows)
  
  S3: 1.3628 (April 28th lows)