USD/CAD pair has rebounded to trade around 1.3936 levels after finding support at 1.3920 levels. The Canadian dollar is slightly stronger across the board on the day against its U.S. counterpart despite US GDP data printing slightly better figures as the oil prices inched up from yesterday's low giving the loonie some strength.
- Further decline for the pair is expected to be limited as the support level at 1.3870 is set to hold the bears from falling further below.
- To the upside, the strong resistance can be seen at 1.4000, a break above this level would take the pair towards next resistance level at 1.4040.
- To the downside immediate support can be seen 1.3919, a break below this level will open the door towards next level at 1.3870.
Recommendation: Go long around 1.3920, targets 1.4000 1.4060, SL 1.3850
Resistance Levels
R1: 1.3973 (23.6% Retracement level)
R2: 1.4000 (Psychological level)
R3: 1.4040
Support Levels
S1: 1.3920 (38.2% Retracement level)
S2: 1.3870 (50% Retracement level)
S3: 1.3825 (61.8% Retracement level)
