FxWirePro: sell USD/CAD below 1.2570, downtrend in the short term

 

• USD/CAD fell back sharply after disappointing US nonfarm payrolls and average hourly earnings. The pair fell from 1.2631 (3 month high) and broke support level at 1.2567. The pair is set to reach 1.2500 psychological level in the short term, as the US dollar is broadly weaker against CAD in the short term.

• The currency is trading at 1.2552 level, the immediate support can be seen at 1.2528 (61.8% Retracement level), a break below this level will expose the pair to next support level at 1.2496.

• Major resistance can be found at 1.2631(Jul 2nd high), a break above this level will expose the pair  to 1.2700 handle.

Recommendation: Go short below 1.2570 with Targets at 1.2530, 1.2490 SL 1.2631.

Resistance Levels

R1: 1.2567

R2: 1.2594

R3: 1.2631(Jul 2nd high)

Support Levels

S1: 1.2528(61.8% Retracement level of 1.2631 to 1.2361)                                               

S2: 1.2496                           

S3: 1.2464(38.2% Retracement Level )