FxWirePro: USD/CAD gains some upside momentum but still bearish

• The USD/CAD pair inched higher on Wednesday despite higher oil prices, as a firmer greenback drove direction ahead of the U.S. Federal Reserve's latest policy decision.
   
• The U.S. central bank will issue its monetary policy statement at 2 p.m. EDT (1800 GMT), where it is expected to hold interest rates unchanged and possibly hint that it will start winding down its massive holdings of bonds as early as September.
   
• Oil prices rose to near eight-week highs on Wednesday, as a fall in U.S. inventories bolstered expectations that the long-oversupplied market was moving toward balance.
   
• Further upside in this pair is expected to be limited as the pair finds strong resistance at 1.2594 which should limit further upside and bring decline towards lower levels in the short term.
   
• The immediate support can be seen at 1.2482, break below this level will expose the pair to next support level at 1.2413.
   
• Major resistance can be seen at 1.2594, break above this level will expose the pair towards 1.2638 levels.
  
  Resistance Levels
  
  R1: 1.2538 (50% Retracement level)
  
  R2: 1.2594 (61.8% Retracement level)
  
  R3: 1.2638 (July 20th high)
  
  Support Levels
  
  S1: 1.2482 (38.2% Retracement level)    
  
  S2: 1.2413 (23.6% Retracement level)
  
  S3: 1.2400 (Psychological levels)

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