FxWirePro: USD/CAD neutral in the near-term, scope for downward resumption

• The USD/CAD pair declined on Friday as Canadian dollar rose to a two-week high against its U.S. counterpart on Friday, as data showing an uptick in the Bank of Canada's core measures of inflation supported the view that the central bank will raise interest rates in the fall.
   
• Canada's overall annual inflation rate rose to 1.2 percent from June's 20-month low of 1.0 percent, matching analysts' expectations.
   
• Two of the three measures of core inflation that the Bank of Canada introduced last year saw gains, Statistics Canada said.
   
• Gains for the loonie came even as prices of oil, one of Canada's major exports, edged lower. U.S. crude prices were down 0.19 percent at $47.00 a barrel.
   
• The pair remains under bears control unless until it trades below 1.2634 resistance level, therefore it is good to sell this pair on short rally.
   
• To the upside, the strong resistance can be seen at 1.2592, a break above will take the pair towards next resistance level at 1.2634.
   
• To the downside immediate support can be seen at 1.2551 levels, a break below will open the door towards next level at 1.2500.
  
  Resistance Levels
  
  R1: 1.2592 (50% Retracement level)
  
  R2: 1.2634 (61.8% Retracement level)
  
  R3: 1.2693  (Aug 16th high)
  
  Support Levels
  
  S1: 1.2551 (38.2% Retracement level)
  
  S2: 1.2500 (23.6% Retracement level)
  
  S3: 1.2445 (Aug 1st lows)

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