FxWirePro: USD/CAD outlook weaker on renewed downside pressure

• The USD/CAD pair declined on Wednesday as Canadian dollar was boosted after comments by Bank of Canada Poloz raised prospects of July rate hike.
   
• Poloz said in a CNBC interview in Europe that Interest rate cuts made in 2015 have done their job and the Bank of Canada needs to consider its options at its upcoming interest rate decision as excess capacity is used up.
   
• Chances of a rate hike next month rose to 45 percent from 30 percent on Tuesday, data from the overnight index swaps market showed.
   
• The currency pair is trading around 1.3044 levels and it is set to decline towards 1.3000 and 1.2950 in the short term.
   
• To the upside, the strong resistance can be seen at 1.3120, a break above will take the pair towards next resistance level at 1.3199.
   
• To the downside immediate support can be seen at 1.3044 levels, a break below will open the door towards next level at 1.3000.
  
  Resistance Levels
  
  R1: 1.3120 (50% Retracement level)
  
  R2: 1.3199 (61.8% Retracement level)
  
  R3: 1.3260 (June 27th high)
  
  Support Levels
  
  S1: 1.3044 (38.2% Retracement level)
  
  S2: 1.3000 (Psychological levels)
  
  S3: 1.2945 (23.6% Retracement level)

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