FxWirePro: USD/CAD outlook weaker on renewed downside pressure

• The USD/CAD pair firmed on Thursday as recovery in oil prices strengthened Canadian dollar further but held on to most of its sharp gains from the day before as solid U.S. economic date limited further gains for loonie.
   
• U.S. data on Thursday were steady overall, with jobless claims dropping to a seasonally-adjusted 247,000 for the week ended July 8. Claims have now been below 300,000 for 123 straight weeks.
   
• U.S. producer prices rose 0.1 percent in June, with core prices also rising. On an annual basis, however, gains in the PPI slowed to a 2.0 percent pace, from 2.4 percent the month before, adding to the narrative of low inflation.
   
• Prices of oil, one of Canada's major exports, rose even as the International Energy Agency said the oil market could stay oversupplied for longer than expected. U.S. crude prices were up 0.33 percent at $45.64 a barrel.
   
• The pair remains under bears control unless until it trades below 1.2935 resistance level, therefore it is good to sell this pair on short rally.
   
• To the upside, immediate resistance can be seen at 1.2822, a break above will take the pair towards next resistance level at 1.2935.
   
• To the downside strong support can be seen at 1.2719 levels, a break below will open the door towards next level at 1.2643.
  
  Resistance Levels
  
  R1: 1.2822 (61.8% Retracement level)
  
  R2: 1.2935 (July 12th high)
  
  R3: 1.3018 (July 4th high)
  
  Support Levels
  
  S1: 1.2719 (50% Retracement level)
  
  S2: 1.2643 (38.2% Retracement level)
  
  S3: 1.2600 (Psychological levels)

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