- USD/CAD declined sharply in the US session to hit low at 1.4326 levels after failing to break resistance level located at 1.4444. The oil correlated-Canadian dollar has gained some ground against US dollar after oil prices rebounded towards $28 a barrel but remained within the sight of 12 year low.
- Currently the pair is trading around 1.4330 levels it is expected to fall further towards 1.4320 and later 1.4280 levels in the short term, therefore it’s good to sell this pair on rallies.
- The immediate support can be seen at 1.4326, break below this level will expose the pair to next support level at 1.4293 levels.
- Major resistance can be seen at 1.4400, break above this level will expose it towards 1.4444.Recommendation: Go short around 1.4380 with targets at 1.4320, 1.4280 SL 1.4440.Resistance LevelsR1: 1.4368 (61.8% Retracement level) R2: 1.4400 (Psychological levels)R3: 1.4444 (61.8% Retracement level)Support LevelsS1: 1.4326 (Session lows) S2: 1.4293 (38.2% Retracement level) S3: 1.4253(23.6% Retracement level)
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