FxWirePro: USDCAD hits fresh 11-year high, scope for further upside

USD/CAD has strongly inched higher breaking the psychological barrier at 1.4000 as the oil-correlated Canadian weakened further on Wednesday following 4 percent drop in oil prices on renewed geopolitical tension between Iran and Saudi Arabia.

• The ongoing upside is set to continue for the pair as the Canadian dollar is weaker across board against most of the major pairs. Any decline is expected to be limited around 1.3980 as the support level at 1.3968 is set to hold the bears from falling further below."
• 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 1.4010, targets 1.4090,  1.4150, SL 1.3860

Resistance Levels

R1: 1.4065 (50% Retracement level)

R2: 1.4108 (38.2% Retracement level)

R3: 1.4154 (23.6% Retracement level)

Support Levels

S1: 1.4022 (61.8% Retracement level)

S2: 1.3968 (Daily lows)

S3: 1.3889 (Jan  5th lows)