FxWirePro: USD/CAD Runs Out of Steam But Maintains Bullish Outlook
- USD/CAD pair begun the week declining towards lower levels from Fridays close as oil prices rose towards 49$ per barrel and investors remained cautious on speculation of US rate hike this summer.
- Oil prices rose as market attention turned to meeting of the Organization of Petroleum Exporting (OPEC) countries in Vienna on Thursday, although no changes is expected in the group’s production plans.
- Further decline for this pair is expected to be limited as US dollar is set to gain strength across the board in the coming days as rate hike speculation is set to weigh on the Canadian dollar.
- To the upside, the strong resistance can be seen at 1.3056, a break above this level would take the pair towards next resistance level at 1.3104.
- To the downside immediate support can be seen 1.3015, a break below this level will open the door towards next level at 1.2975. Resistance Levels R1: 1.3056 (38.2% Retracement level) R2: 1.3104 (23.6% Retracement level) R3: 1.3135 (May 26th high) Support Levels S1: 1.3015 (50% Retracement level) S2: 1.2975 (61.8% Retracement level) S3: 1.2911 (May 26th lows )