The movement of Canadian dollar depends on the BOC policy meeting which is to be held on 21st Jan 2015. Canadian dollar declined to five year low against USD on account of decline in the Crude oil prices. The is expected to revise down the growth forecasts in this policy meeting on account of 40 per cent drop in oil prices since forecasts were last prepared in October.
On the downside minor support is around 1.1920 (23.6% retracement of 1.15636 and 1.2045) and any break below will target 1.1800
USD/CAD major resistance is around 1.2050 and any break above will target 1.2148 (161.8% retracement of 1.18017 and 1.20162).
Indicators (4 Hour chart)
(50) - Buy
(14) - Sell
Recommendation: Buy USD/CAD 1.1920, SL 1.180, Target 1.2140.