• USD/CAD pair begun the week advancing higher from Fridays close as comments by a Federal Reserve on rate hike supported the greenback and oil prices declined 3 percent as China ramped up exports of refined products.
   
• Currently, the currency pair is trading at 1.2920 levels, it is set to advance further towards 1.3000 and later 1.3070 levels in the short term.
   
• To the upside, the strong resistance can be seen at 1.2991, a break above this level would take the pair towards next resistance level at 1.3071.
   
• To the downside, immediate support can be seen 1.2861, a break below this level will open the door towards next level at 1.2761.
  
  Resistance Levels
  
  R1: 1.2925 (50% Retracement level)                          
  
  R2: 1.2991 (38.2% Retracement level)
  
  R3: 1.3071 (23.6% Retracement level)
  
  Support Levels
  
  S1: 1.2861 (61.8% Retracement level)
  
  S2: 1.2761 (Aug 19th lows)
  
  S3: 1.2700 (Psychological levels)