• The USD/CAD pair declined on Tuesday as the Canadian dollar strengthened as oil rallied and greenback selloff deepened.
• Falling U.S. dollar and Saudi Arabia’s pledge to adhere to OPEC’s commitment to cut output supported crude prices.
• However, gains were capped by rising U.S. production and scepticism that the Organization of the Petroleum Exporting Countries as a whole would comply with its commitment to reduce supplies.
• The pair hit low at 1.3018 levels in the early US session, but recovered slightly towards 1.3068 as oil prices pared gains.
• The pair remains weak, as the Canadian dollar is set to gain further against dollar in the short term.
• The immediate support can be seen at 1.3060, break below this level will expose the pair to next support level at 1.3000.
• Major resistance can be seen at 1.3200, break above this level will expose it towards 1.3290 levels.Resistance Levels

  R1: 1.3116 (61.2% Retracement level)

  R2: 1.3188 (Daily high)

  R3: 1.3200 (Psychological levels)

  Support Levels

  S1: 1.3060 (50% Retracement level)

  S2: 1.3000 (38.2% Retracement level)

  S3: 1.2931 (23.6% Retracement level)

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