FxWirePro: USD/CAD declines to hit 8-week low, scope for further downside

The USD/CAD pair slipped sharply to test support level at 1.3678 levels, after the US market opened. However, after finding support at 1.3635 the pair rebounded back to trade around 1.3700 levels. 

• As long the pair trades below strong resistance located at 1.3790 levels, the ongoing bearish trend for the pair is set to continue. Therefore it is good to sell this pair on rallies.
• The currency pair is trading around 1.3700 levels, it is expected to reach 1.3650 levels and 1.3500 levels in the short term.
• The immediate support can be seen at 1.3635, break below this level will expose the pair to next support level at 1.3600.
• Major resistance can be seen at 1.3790, break above this level will expose it towards 1.3930 and beyond.

Recommendation: Go short around 1.3750 with targets at 1.3650, 1.3550 SL 1.3790.

Resistance Levels

• R1: 1.3700 (50% Retracement level)
• R2: 1.3790 (61.8% Retracement level)
• R3: 1.3930 (Feb 3rd high)

Support Levels

• S1: 1.3635 (Daily lows)
• S2: 1.3600 (38.2% Retracement level)
• S3: 1.3522 (Dec 10th lows)