FxWirePro: USD/CAD Dips Below Lower Range, Bearish Bias Increases
- USD/CAD has declined sharply in the US session, as the pair was weighted down by a strong rally in oil prices after data showed crude oil inventories at end of May 6 week were 540 million barrels, a 3.4-mmb decline versus the prior week.
- Further upside is expected to be limited as the pair finds strong resistance at 1.2900 levels.
- Currently the currency pair is trading at 1.2843 levels, it is set to decline future towards 1.2800 and later 1.2750 levels in the short term.
- To the upside, the strong resistance can be seen at 1.2900, a break above will take the pair towards next resistance level at 1.2951.
- To the downside immediate support can be seen at 1.2830 levels, a break below will open the door towards next level at 1.2770. Resistance Levels R1: 1.2900 (23.6% Retracement level) R2: 1.2951 (May 6th high) R3: 1.3000 (Psychological levels) Support Levels S1: 1.2830 (38.2% Retracement level) S2: 1.2770 (50% Retracement level) S3: 1.2711 (61.8% Retracement level)