• The USD/CAD pair rose on Thursday as lower oil prices and broader strength in the greenback pressured the Canadian dollar.
   
• Prices of oil dropped to six-week lows, under pressure from high global inventories and doubts about OPEC's ability to implement agreed production cuts.
   
• Losses for the loonie came two days after Bank of Canada signalled that higher interest rates lie ahead.
   
• The pair hit low at 1.3265 before recovering slightly to trade around 1.3281 levels in the afternoon US session.
   
• Further upside is expected to be limited as the pair finds strong resistance at 1.3381 which should limit upside and bring decline towards lower levels in the short term.
   
• Major support can be seen at 1.3163, break below this level will expose the pair to next support level at 1.3100.
   
• The immediate resistance can be seen at 1.3304, break above this level will expose the pair towards 1.3381 levels.
  
  Resistance Levels
  
  R1: 1.3304 (50% Retracement level)
  
  R2: 1.3381 (61.8% Retracement level)
  
  R3: 1.3450 (April 3rd high)
  
  Support Levels
  
  S1: 1.3226 (38.2% Retracement level)    
  
  S2: 1.3163 (June 14th lows)
  
  S3: 1.3100 (Psychological levels)