FxWirePro: USD/CAD drops below 1.3450 as oil rallies, scope for further downside

The USD/CAD pair declined on  Monday as the Canadian dollar gained strengthened as the prices of oil prices rallied ahead of a meeting this week of major oil producers, while investors awaited a speech by Bank of Canada Governor Stephen Poloz.

Oil prices gained more than two percent in choppy trading, recovering earlier losses as the market reacted to prospect of the Organization of the Petroleum Exporting Countries being able to agree output cut.

The pair remains weak, as the Canadian dollar is set to gain further against dollar in the short term.

The currency pair is trading at 1.3417 levels, it is expected to reach 1.3380 levels and 1.3350 levels in the short term.

The immediate support can be seen at 1.3394, break below this level will expose the pair to next support level at 1.3345.

Major resistance can be seen at 1.3452, break above this level will expose it towards 1.3499 levels.

Resistance Levels

R1: 1.3452 (50% Retracement level)

R2: 1.3499 (Daily high)   

R3: 1.3560 (61.8% Retracement level)

Support Levels

S1: 1.3394 (Session lows)             

S2: 1.3345 (23.6% Retracement level)    

S3: 1.3300 (Psychological levels)