• The USD/CAD pair declined on Monday as oil prices recovered, while investors awaited a Bank of Canada interest rate decision on Wednesday.
   
• Oil prices rose modestly, but rising drilling activity in the United States and uncertainty over Libyan and Nigerian production cuts clouded the future supply outlook.
   
• On Friday, the loonie touched its strongest in nearly 10 months at C$1.2860 after stronger-than-expected domestic jobs data boosted chances of a rate increase as soon as this week.
   
• The currency pair is trading around 1.2872 levels and it is set to decline further towards 1.2840 and 1.2780 later in the short term.
   
• To the upside, immediate resistance can be seen at 1.2935, a break above will take the pair towards next resistance level at 1.3016.
   
• To the downside strong support can be seen at 1.2830 levels, a break below will open the door towards next level at 1.2800.
  
  Resistance Levels
  
  R1: 1.2935 (50% Retracement level)
  
  R2: 1.3016 (July 5th high)
  
  R3: 1.3064 (61.8% Retracement level)
  
  Support Levels
  
  S1: 1.2830 (38.2% Retracement level)
  
  S2: 1.2800 (Psychological levels)
  
  S3: 1.2686 (38.2% Retracement level)