• The USD/CAD pair edged higher on Monday as oil prices declined and Fridays’ better-than-expected U.S. retail sales boosted dollar on expectations that Federal Reserve may raise interest rates later this year.
   
• As long the pair trades above strong support zone located at 1.2900 levels, the ongoing bullish trend for the pair is set to continue in the short term.
   
• The currency pair is trading around 1.2995 levels, it is expected to reach 1.3050 levels and 1.3120 levels in the short term.
   
• The immediate support can be seen at 1.2971, break below this level will expose the pair to next support level at 1.2900.
   
• Major resistance can be seen at 1.3044, break above this level will expose it towards 1.3136 levels.
  
  Resistance Levels
  
  R1: 1.3016 (Session high)
  
  R2: 1.3044 (38.2% Retracement level)
  
  R3: 1.3136 (23.6% Retracement level)
  
  Support Levels
  
  S1: 1.2971 (50% Retracement level)       
  
   S2: 1.2900 (61.8% Retracement level)
  
  S3: 1.2857 (July 15th lows)