- The USD/CAD initially declined on Thursday, falling up to 1.2875 in the early American session as the pair was weighed down by higher oil prices. But the pair rebounded back strongly after the U.S. government reported a weekly crude draw that was within forecasts, disappointing market bulls.
- Oil prices fell nearly 3 percent as the EIA's figure came in just below the decline of 2.3 million barrels forecast by analysts but far less than the 6.7 million-barrel draw reported by trade group the American Petroleum Institute late Wednesday.
- The ongoing upside is set to continue as the support level at 1.2900 is set to hold the bears from falling further below and rebound back to higher side.
- To the upside, the immediate resistance can be seen at 1.3051, a break above this level would take the pair towards next resistance level at 1.3100.
- To the downside, immediate support can be seen 1.2970, a break below this level will open the door towards next level at 1.2900 handle.
Resistance Levels
R1: 1.3051 (38.2% Retracement level)
R2: 1.3100 (June 24th high)
R3: 1.3146 (23.6% Retracement level)
Support Levels
S1: 1.2970 (50% Retracement level)
S2: 1.2900 (Psychological levels)
S3: 1.2830 (July 4th lows)
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