FxWirePro: USD/CAD retains bearish outlook with scope to target 1.2400

• The USD/CAD pair continued to dip on Tuesday as the U.S. dollar slid against a basket of currencies and oil prices climbed on promises by major producers to help control oversupply.
   
• Prices of crude oil, a key Canadian export, strengthened further after Saudi Arabia promised to curb exports and the Organization of the Petroleum Exporting Countries and non-OPEC producers discussed extending their deal to cut output beyond March 2018 if necessary.
   
• The U.S. dollar fell to a more than one-year low against its rivals ahead of a two-day Federal Reserve meeting that starts later on Tuesday.
   
• The combination of a weaker U.S. dollar, higher oil prices and robust economic data helped push the Canadian dollar to its strongest level in 14 months on Monday, breaching the C$1.25, or 80 U.S. cents, level.
   
• The ongoing weakness is set to continue for this pair as the resistance level at 1.2594 is likely to act as strong barrier to the bulls and bring a further decline towards lower levels.
   
• The immediate support can be seen at 1.2482, break below this level will expose the pair to next support level at 1.2413.
   
• Major resistance can be seen at 1.2594, break above this level will expose the pair towards 1.2638 levels.
  
  Resistance Levels
  
  R1: 1.2538 (50% Retracement level)
  
  R2: 1.2594 (61.8% Retracement level)
  
  R3: 1.2638 (July 20th high)
  
  Support Levels
  
  S1: 1.2482 (38.2% Retracement level)    
  
  S2: 1.2413 (23.6% Retracement level)
  
  S3: 1.2400 (Psychological levels)

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