- The USD/ CAD declined sharply, after crude oil prices jumped following an unexpected drop in US inventories, shrugging off the weak Canadian macro-economic data. However, the pair on its downward path has hit support level 1.3829 and has rebounded to trade around 1.3856 levels.
- The pair has to close below 1.3796 in order find any bearish momentum unless until it’s good to go long on this pair.
- To the upside, the strong resistance can be seen at 1.3920, a break above this level would take the pair all the way towards 1.4000 levels.
- To the downside immediate support can be seen 1.3834, a break below this level will take the pair towards next level located at 1.3796.Recommendation: Go long around 1.3850, targets 1.3920, 1.40000 SL 1.3780Resistance LevelsR1: 1.3872 (38.2% Retracement level)R2: 1.3920 (23.6% Retracement level)R3: 1.3955 (Dec 22nd high)Support LevelsS1: 1.3834 (50% Retracement level)S2: 1.3796 (61.8% Retracement level)S3: 1.3746 (Dec 16th low)
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