Canadian dollar declined against US dollar on Tuesday, after Canadian dollar weakened further after been dragged down further following falling oil prices and stock market turmoil. 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 1.4200 levels, it is expected to reach 1.4300 levels and later 1.4350 levels in the short term.
- The immediate support can be seen at 1.4192, break below this level will expose the pair to next support level at 1.4160.
- Major resistance can be seen at 1.4263, break above this level will expose it towards 1.4300 levels.
Recommendation: Go long around 1.4200 with targets at 1.4250, 1.4300 SL 1.4150.
Resistance Levels
R1: 1.4225 (38.2% Retracement level)
R2: 1.4263 (23.6% Retracement level)
R3: 1.4300 (Psychological levels)
Support Levels
S1: 1.4192 (50% Retracement level)
S2: 1.4160 (61.8% Retracement level)
S3: 1.4104 (Jan 8th lows)
