• The USD/CAD fell down towards 1.2630, a fresh 9-month low as the pair was weighted down by strong Canadian dollar. However, the pair recovered some ground in the early US session, as oil prices dipped slightly following ECB press conference.
   
• The short term outlook for the pair is bearish, as the Canadian dollar is set to gain further against dollar in the short term.
   
• The currency pair is trading at 1.2661 levels, it is expected to reach 1.2600 levels and 1.2550 levels in the short term.
   
• The immediate support can be seen at 1.2632, break below this level will expose the pair to next support level at 1.2546.
   
• Major resistance can be seen at 1.2783, break above this level will expose it towards 1.2800 levels.
  
  Resistance Levels
  
  R1: 1.2700 (50% Retracement level)
  
  R2: 1.2734 (Daily high)   
  
  R3: 1.2783 (61.8% Retracement level)
  
  Support Levels
  
  S1: 1.2632 (38.2% Retracement level)    
  
  S2: 1.2600 (Psychological levels)               
  
  S3: 1.2546 (23.6% Retracement level)