FxWirePro: USD/CAD Pauses Decline, Downside Risk Remains
- The USD/CAD pair continued its decline on Wednesday, as the Canadian dollar gained strength as the prices of oil gained further ground.
- A weaker U.S. dollar added to gains for the loonie. The greenback hit a one-month trough against a basket of major currencies, hurt by waning expectations that the Federal Reserve will raise interest rates anytime soon.
- The pair remains weak, as the Canadian dollar is set to gain further against dollar in the short term.
- The currency pair is trading at 1.2712 levels, it is expected to reach 1.2660 levels and 1.2600 levels in the short term.
- The immediate support can be seen at 1.2657, break below this level will expose the pair to next support level at 1.2622.
- Major resistance can be seen at 1.2780, break above this level will expose it towards 1.2840 levels. Resistance Levels R1: 1.2720 (50% Retracement level) R2: 1.2780 (61.8% Retracement level) R3: 1.2840 (May 7th high) Support Levels S1: 1.2657 (38.2% Retracement level) S2: 1.2622 (April 22nd lows) S3: 1.2580 (23.6% Retracement level)