- The USD/CAD pair inched higher on Wednesday as firmer dollar and lower oil prices weighed on the risk-sensitive Canadian dollar.
- The U.S. dollar rose against a basket of major currencies ahead of the Fed minutes. U.S. manufacturing data on Monday.
- Oil prices ended their longest bull run in more than five years, as climbing Organization of the Petroleum Exporting Countries' exports and a stronger dollar turned sentiment more bearish.
- However, further upside for this pair is expected to be limited as strong resistance level at 1.3163 is set to limit upside and bring decline towards lower levels.
- To the upside, immediate resistance can be seen at 1.3300, a break above will take the pair towards next resistance level at 1.3088.
- To the downside strong support can be seen at 1.2900 levels, a break below will open the door towards next level at 1.2835.
Resistance Levels
R1: 1.3300 (50% Retracement level)
R2: 1.3088 (61.8% Retracement level)
R3: 1.3163 (Jan 21st high)
Support Levels
S1: 1.2911 (38.2% Retracement level)
S2: 1.2900 (Psychological levels)
S3: 1.2835 (23.5% Retracement level)
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