FxWirePro: USD/CAD key support at 1.3228, buy deals are recommended above 1.3230

USD/CAD has hit strong resistance at 1.3275 levels, and is retreating to test support level at 1.3226. US dollar gathered some momentum after Producer Price Index (PPI) was released from US market, which printed positive reading at 0.0% a slightly better than the forecasted figures of -0.1%. The US dollar has continued to remain stronger against oil correlated Canadian dollar and is set to reach higher levels. Therefore, it's good to enter long order around 1.3230 levels.

• The currency pair is trading at 1.3258 levels, it is expected to reach 1.3280 levels and 1.3320 levels in the short term.

• The immediate support can be seen at 1.3228 (38.2% Retracement level), break below this level will expose the pair to next support level at 1.3188.

• Major resistance can be seen at 1.3285, break above this level will expose it towards 1.3325 (Sep 2nd) levels.

Recommendation: Go long above 1.3230 with targets at 1.3260, 1.3300 SL 1.3100.

Resistance Levels

R1: 1.3275 (23.6% Retracement level)

R2: 1.3285(Sep 8th high)

R3: 1.3325 (Sep 2nd)

Support Levels

S1: 1.3228 (38.2% Retracement level)    

S2: 1.3188 (50% Retracement level)        

S3: 1.3150(61.8% Retracement level)