FxWirePro: USD/CAD neutral in the near-term, scope for downward resumption

• The USD/CAD pair continued its decline on Thursday as Canadian dollar was boosted after oil prices rose, while investors braced for an interest rate hike from the Bank of Canada as soon as next month.
   
• Gains for the loonie came after it scored on Wednesday its biggest advance in three months, boosted by hawkish comments from Bank of Canada Governor Stephen Poloz.
   
• Chances of a rate hike next month have increased to 44 percent from just 20 percent after subdued inflation data on Friday, data from the overnight index swaps market showed.
   
• The currency pair is trading around 1.3000 levels and it is set to decline towards 1.2960 and later 1. 1.2930 in the short term.
   
• To the upside, the strong resistance can be seen at 1.3141, a break above will take the pair towards next resistance level at 1.3200.
   
• To the downside immediate support can be seen at 1.3000 levels, a break below will open the door towards next level at 1.2964.
  
  Resistance Levels
  
  R1: 1.3071 (50% Retracement level)
  
  R2: 1.3141 (61.8% Retracement level)
  
  R3: 1.3200 (Psychological level)
  
  Support Levels
  
  S1: 1.3000 (38.2% Retracement level)
  
  S2: 1.2964 (Jan 31st lows)
  
  S3: 1.2914 (23.6% Retracement level)

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