USD/CAD slides for third consecutive day, inching closer to 1.2900 level

The USD/CAD pair remained well offered and is now extending its slide for third consecutive day, inching back towards 1.2900 handle. 

The pair on Wednesday fell sharply after BOC left its key interest rates unchanged. Although the pair did manage to rebound from lower levels, but failed to reclaim 1.3000 psychological mark. The Canadian Dollar gained traction despite of a sharp slide in crude oil prices.

On Thursday, a broadly weaker US Dollar and a tepid recovery in oil prices continued fueling selling pressure around the USD/CAD pair. 

Next in focus would be BOE monetary policy decision, which might have a direct impact on market sentiment and eventually drive the USD/CAD major. 

Meanwhile short-term traders would be focusing on the release of new housing price index (NHPI) from Canada, which would be accompanied with US weekly jobless claims and PPI data, later during NA trading session.

Technical levels to watch

On a sustained weakness below 1.2900 handle, the pair seems to continue drifting lower towards testing a short-term ascending trend-line support near 1.2825-20 region.

Meanwhile on the upside, 50-day SMA near 1.2950-60 region now seems to act as immediate resistance. This is followed by a strong hurdle near 1.3000 psychological mark, which if conquered would negate any near-term bearish expectations and set the stage for near-term bullish momentum for the pair.