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

• The USD/CAD pair inched slightly higher on Monday as Canadian dollar was pressured by a dip in oil prices and U.S. political uncertainty, but the loonie was on track to advance for the third straight month.
   
• Oil prices retreated after hitting two-month highs. Oil earlier climbed as news of a producers' meeting next week added to bullish sentiment driven by the threat of U.S. sanctions against OPEC-member Venezuela.
   
• The currency pair has rallied more than 10 percent since early May, including 4 percent this month, as the Bank of Canada raised interest rates for the first time in nearly seven years.
   
• Further upside in this pair is expected to be limited as the pair finds strong resistance at 1.2603 is set to limit further upside and bring decline towards lower levels in the short term.
   
• To the upside, immediate resistance can be seen at 1.2530, a break above will take the pair towards next resistance level at 1.2603.
   
• To the downside strong support can be seen at 1.2452 levels, a break below will open the door towards next level at 1.2358.
  
  Resistance Levels
  
  R1: 1.2530 (50% Retracement level)
  
  R2: 1.2603 (61.8% Retracement level)
  
  R3: 1.2653 (July 16th high)
  
  Support Levels
  
  S1: 1.2452 (38.2% Retracement level)
  
  S2: 1.2358 (23.6% Retracement level)
  
  S3: 1.2300 (Psychological levels)

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