- The USD/CAD pair inched higher on Tuesday as oil prices slipped from two-month highs, while the greenback stabilized a day after being pressured by political turmoil in Washington.
- U.S. crude prices were down 0.76 percent at $49.79 a barrel as ample global supplies countered strong demand and forecasts of another drop in U.S. crude inventories.
- The dollar edged higher as investors consolidated positions, a day after fresh political turmoil in Washington caused the U.S. currency to post its biggest monthly drop in 16 months.
- However, further upside in this pair is expected to be limited as the pair finds strong resistance at 1.2600 which should limit further upside and bring decline towards lower levels in the short term.
- The immediate support can be seen at 1.2530, break below this level will expose the pair to next support level at 1.2600.
- Major resistance can be seen at 1.2454, break above this level will expose the pair towards 1.2400 levels.
Resistance Levels
R1: 1.2530 (50% Retracement level)
R2: 1.2600 (61.8% Retracement level)
R3: 1.2654 (July 20th high)
Support Levels
S1: 1.2454 (38.2% Retracement level)
S2: 1.2400 (Psychological levels)
S3: 1.2356 (23.6% Retracement level)
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