FxWirePro: USD/CAD key resistance at 1.3931, bearish in the short term

USD/CAD slipped back sharply in the early US session to hit low at 1.3838 levels after failing to break resistance level located at 1.3870. The oil correlated-Canadian dollar has gained some ground against US dollar after oil prices rebounded towards $37 a barrel but remained within the sight of 11 year low.

• Currently the pair is trading around 1.3856 levels it is expected to fall further towards 1.3800 and later 1.3760 levels in the short term, therefore it's good to sell this pair on rallies.
   
• The immediate support can be seen at 1.3836, break below this level will expose the pair to next support level at 1.3796 levels.
   
• Major resistance can be seen at 1.3931, break above this level will expose it towards 1.4000.
  
  Recommendation: Go short around 1.3850 with targets at 1.3800, 1.3750 SL 1.3940.
  
  Resistance Levels
  
  R1: 1.3872 (61.8% Retracement level)
  
  R2: 1.3931 (Dec 23rd high)
  
  R3: 1.4000 (Psychological levels)
  
  Support Levels
  
  S1: 1.3836 (50% Retracement level)
  
  S2: 1.3796 (38.2% Retracement level)
  
  S3: 1.3750 (23.6% Retracement level)