FxWirePro: USD/CAD runs out of steam but maintains bullish outlook

USD/CAD slipped sharply backwards towards 1.3290 levels after comments from Bank of Canada governor Poloz. Canadian dollar is slightly stronger across the board on the day despite weak oil price which fell below $33 for the first time since April 2004 as the Chinese shares rattled investors already concerned by oversupply of crude oil.

• Further downside is expected to be limited as the support level located at 1.4022 is likely to hold the bears from falling further below and bring a rebound back towards higher levels.
   
• To the upside, the strong resistance can be seen at 1.4108, a break above this level would take the pair all the way towards 1.4154 levels.
   
• To the downside immediate support can be seen 1.4022, a break below this level will take the pair to next level at 1.3968.
  
  Recommendation: Go long above 1.4040, targets 1.4100, 1. 1.4150, SL 1.3860
  
  Resistance Levels
  
  R1: 1.4108 (38.2% Retracement level)
  
  R2: 1.4154 (23.6% Retracement level)
  
  R3: 1.4200 (Psychological levels)
  
  Support Levels
  
  S1: 1.4065 (50% Retracement level)
  
  S2: 1.4022 (61.8% Retracement level)
  
  S3: 1.3968 (Jan 6th lows)