FxWirePro: USD/CAD key resistance at 1.3150, downside prevails in the short term

USD/CAD has rebounded after hitting minor resistance level at 1.3063 and is approaching resistance level at 1.3110. The 1.3150 levels are set to hold the bulls and push the bulls downwards, as this level has been a strong resistance zone in the recent days.

• The currency pair is trading at 1.3089 levels, it is expected to decline towards lower levels, as the US Dollar has weakened against Canadian $ ,after dovish FOMC meeting and lack of clarity regarding rate hike by the Feds.

• Ahead in early US session, Canada is set to release CPI and Retail sales data which may through up some volatility in this pair, so traders should trade this pair with caution.

• The immediate support can be seen at 1.3052(38.2% Retracement level), break below this level will expose the pair to next support level at 1.3022(Aug 19th lows).

• Major resistance can be seen at 1.3151 (Aug 17th high), break above this level will expose it towards 1.3175 levels.

Recommendation: Go short below 1.3120 with targets at 1.3080, 1.3060 SL 1.3180.

Resistance Levels

R1: 1.3108 (61.8% Retracement level)    
R2: 1.3151 (Aug 17th high)
R3: 1.3178(Aug 20th high)

Support Levels

S1: 52(38.2% Retracement level)                     
S2: 1.3022(Aug 19th lows)
S3: 1.3013 (23.6% Retracement level)