• The USD/CAD pair declined on Friday as higher oil prices and domestic growth which supported the Bank of Canada's more hawkish stance strengthened Canadian dollar.
   
• Canada's economy expanded by 0.2 percent in April after a 0.5 percent increase in March, Statistics Canada said. The gain matched analysts' estimates.
   
• Oil prices climbed for a seventh straight session in their longest bull run since April but were still set for the worst first-half performance since 1998.
   
• Hawkish comments earlier this week from Bank of Canada Governor Stephen Poloz have raised expectations for an interest rate hike as early as next month.
   
• The ongoing weakness is set to continue for this pair as the resistance level at 1.3086 is likely to act as strong barrier to the bulls and bring a further decline towards lower levels.
   
• The immediate support can be seen at 1.2921, break below this level will expose the pair to next support level at 1.2900.
   
• Major resistance can be seen at 1.3086, break above this level will expose the pair towards 1.3123 levels.
  
  Resistance Levels
  
  R1: 1.3004 (50% Retracement level)
  
  R2: 1.3086 (61.8% Retracement level)
  
  R3: 1.3123 (Feb 2nd high)
  
  Support Levels
  
  S1: 1.2921 (38.2% Retracement level)    
  
  S2: 1.2900 (Psychological levels)
  
  S3: 1.2819 (23.6% Retracement level)