• The USD/CAD pair declined sharply in US session hitting as low as 1.3834 after oil  prices jumped as much as 5 percent on Wednesday after investors broadly sold off U.S. dollar after weak ISM non-Manufacturing PMI data. Despite weekly data showing a surprisingly large rise in crude oil inventories, the oil-correlated canadian dollar rose against US dollar due to high volatility in the market ahead of Fridays non- farm payrolls.
  
  
• However, further decline towards lower levels should be limited as pair faces strong support at 1.3800 levels Technically stochastic is in oversold levels, RSI Indicator is slowly turning up at 37.
  
  
• To the upside, the strong resistance can be seen at 1.4000, a break above will take the pair towards next resistance level at 1.4130.
  
  
• To the downside immediate support can be seen at 1.3800 levels, a break below will open the door towards next level at 1.3765.
  
  Recommendation: Go long  around 1.3800, targets 1.3900, 1.3980, SL 1.3700
  
  Resistance Levels
  
  R1: 1.3915 (50% Retracement level)
  
  R2: 1.4000 (38.2% Retracement level)
  
  R3: 1.4130 (23.6% Retracement level)
  
  Support Levels
  
  S1: 1.3800 (61.8% Retracement level)
  
  S2: 1.3765 (Dec 17th lows)
  
  S3: 1.3700 (Psychological levels)