• The USD/CAD pair inched higher in the US session on Tuesday as a drop in oil prices and stronger dollar across the board pressured the Canadian dollar.
   
• Prices of oil, one of Canada's major exports, fell to seven-month lows on news of boosted supply by several key producers. U.S. crude prices shed 2.56 percent to $43.07 a barrel.
   
• The U.S. dollar reached a three-week high against a basket of major currencies, boosted by comments from the U.S. Federal Reserve bolstering expectations that it would keep raising interest rates.
   
• The currency pair is trading around 1.3278 levels and it is set to advance further towards 1.3320 and 1.3350 levels in the short term.
   
• To the upside, immediate resistance can be seen at 1.3280, a break above will take the pair towards next resistance level at 1.3300.
   
• To the downside strong support can be seen at 1.3208 levels, a break below will open the door towards next level at 1.3159.
  
  Resistance Levels
  
  R1: 1.3280 (50% Retracement level)
  
  R2: 1.3300 (Psychological levels)
  
  R3: 1.3356 (61.8% Retracement level)\
  
  Support Levels
  
  S1: 1.3208 (38.2% Retracement level)
  
  S2: 1.3159 (June 14th lows)
  
  S3: 1.3114 (23.6% Retracement level)