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FxWirePro: USD/CAD heads southwards as crude oil prices rebound, but outlook still bullish

Canadian dollar firmed against US dollar on Tuesday, after Canadian dollar gathered some momentum after crude oil price rebounded. The outlooks for crude remains bearish as the demand are slowing and there is over supply…

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Canadian dollar firmed against US dollar on Tuesday, after Canadian dollar gathered some momentum after crude oil price rebounded. The outlooks for crude remains bearish as the demand are slowing and there is over supply of crude in the market. 
 

  • The intraday trend remains bullish for the pair as the oil-correlated Canadian dollar is set to come under pressure from strengthening dollar in the short term.
     
  • The currency pair is trading at 1.3846 levels, it is expected to reach 1.3950 levels and later 1.4000 levels in the short term. 
     
  • The immediate support can be seen at 1.3836, break below this level will expose the pair to next support level at 1.3797.
     
  • Major resistance can be seen at 1.3924, break above this level will expose it towards 1.4000 levels.

    Recommendation: Go long around 1.3810 with targets at 1.3920, 1.4000 SL 1.3750.

    Resistance Levels

    R1: 1.3876 (38.2% Retracement level)

    R2: 1.3924 (23.6% Retracement level)

    R3: 1.3955 (Dec 22nd high)

    Support Levels

    S1: 1.3836 (50% Retracement level)

    S2: 1.3797 (61.8% Retracement level)

    S3: 1.3738 (Dec 16th lows)

 

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