• USD/CAD has declined sharply in the US session, as the pair was weighted down by a strong rally in oil prices after data showed crude oil inventories at end of May 6 week were 540 million barrels, a 3.4-mmb decline versus the prior week.
   
• Further upside is expected to be limited as the pair finds strong resistance at 1.2900 levels.
   
• Currently the currency pair is trading at 1.2843 levels, it is set to decline future towards 1.2800 and later 1.2750 levels in the short term.
   
• To the upside, the strong resistance can be seen at 1.2900, a break above will take the pair towards next resistance level at 1.2951.
   
• To the downside immediate support can be seen at 1.2830 levels, a break below will open the door towards next level at 1.2770.
  
  Resistance Levels
  
  R1: 1.2900 (23.6% Retracement level)
  
  R2: 1.2951 (May 6th high)
  
  R3: 1.3000 (Psychological levels)
  
  Support Levels
  
  S1: 1.2830 (38.2% Retracement level)
  
  S2: 1.2770 (50% Retracement level)
  
  S3: 1.2711 (61.8% Retracement level)