FxWirePro: USD/CAD heads deeper into bear territory, scope for further downside

• The USD/CAD pair declined on Monday as oil prices edged higher, while dollar dipped to new lows on the back of data that pointed to weak U.S. inflation and dampened prospects for rate hikes.
   
• Prices of oil, one of Canada's major exports, edged higher as fewer drilling rigs were added in the United States. U.S. crude prices were up 0.06 percent at $46.57 a barrel.
   
• The Canadian dollar was trading slightly higher at C$1.2633 to the greenback, or 79.05 U.S. cents.
   
• The ongoing weakness is set to continue for this pair as the resistance level at 1.2741 is likely to act as strong barrier to the bulls and bring a further decline towards lower levels.
   
• The immediate support can be seen at 1.2623, break below this level will expose the pair to next support level at 1.2600.
   
• Major resistance can be seen at 1.2741, break above this level will expose the pair towards 1.2772 levels.
  
  Resistance Levels
  
  R1: 1.2684 (50% Retracement level)
  
  R2: 1.2741 (61.8% Retracement level)
  
  R3: 1.2772 (July 13th  high)
  
  Support Levels
  
  S1: 1.2623 (38.2% Retracement level)    
  
  S2: 1.2600 (Psychological levels)
  
  S3: 1.2550 (23.6% Retracement level)

FxWirePro launches Absolute Return Managed Program. For more details, visit http://www.fxwirepro.com/invest