• The USD/CAD pair has declined sharply to hit six month low at 1.2791 in the American session, as the pair was weighted down by a strong rally in oil prices after a report appeared that top oil producers Russia and Saudi Arabia have agreed to freeze output.
   
• BoC meets on Wednesday to decide monetary policy. The central bank is expected The central bank is expected to keep policy rate unchanged at 0.50%.
   
• The currency pair is trading at 1.2800 levels, it is expected to reach 1.2780 levels and 1.2750 levels in the short term.
   
• The immediate support can be seen at 1.2770, break below this level will expose the pair to next support level at 1.2705.
   
• Major resistance can be seen at 1.2870, break above this level will expose it towards 1.2920 levels.
  
  Resistance Levels
  
  R1: 1.2821 (50% Retracement level)        
  
  R2: 1.2870 (61.8% Retracement level)                    
  R3: 1.2920 (Daily high)
  
  Support Levels
  
  S1: 1.2770 (38.2% Retracement level)
  
  S2: 1.2705 (23.6% Retracement level)    
  
  S3: 1.2664 (Dec 7thlows)