• The USD/CAD pair declined on Wednesday as increased bets that Bank of Canada will hike interest rate this year and weaker dollar across the board boosted Canadian dollar.
   
• Chances of a rate hike this year have surged to more than three-in-four after hawkish comments this week from central bank officials, including Governor Stephen Poloz.
   
• Gains for the loonie came even as prices of oil, one of Canada's major exports, fell after data showed a build in U.S. crude stocks and OPEC reported a rise in its production despite a pledge to cut supply.
   
• The U.S. dollar fell against a basket of major currencies after the release of weaker-than-expected U.S. inflation and retail sales data.
   
• The currency pair is trading around 1.3223 levels and it is set to decline further towards 1.3150 and 1.3080 in the short term.
   
• To the upside, the strong resistance can be seen at 1.3306, a break above will take the pair towards next resistance level at 1.3400.
   
• To the downside immediate support can be seen at 1.3120 levels, a break below will open the door towards next level at 1.3046.
  
  Resistance Levels
  
  R1: 1.3225 (50% Retracement level)
  
  R2: 1.3306 (61.8% Retracement level)
  
  R3: 1.3400 (Psychological levels)
  
  Support Levels
  
  S1: 1.3120 (38.2% Retracement level)
  
  S2: 1.3046 (Feb 24th lows)
  
  S3: 1.3004 (23.6 % Retracement level)