USD/CAD slides to session low at 1.3150 as oil recovers

After making a fresh attempt to reclaim 1.3200 handle, the USD/CAD pair erased all of its early gains and dropped to session low to currently trade around mid-1.3100s.

Recovery in crude oil prices lifted the commodity-linked currency - Loonie. Adding to this, a broadly retracing greenback also contributed to the USD/CAD pair's downslide during the last hour of trading. 

Focus now shifts to today's Canadian housing starts data, which will be followed by release of prelim nonfarm productivity and unit labor costs from the US, later during NA trading session.

The pair has repeatedly failed to conquer 1.3200 region but the retracement has been short-lived and any dip is being utilized as buying opportunity suggesting that the pair might be consolidating before building on to its NFP-led sharp gains.

Technical levels to watch

Weakness below 1.3150, and a subsequent drop below 1.3135 (Monday's low), seems to drag the pair back towards 200-day SMA support near 1.3085-80 region. Any follow through weakness below 200-day SMA is likely to get bought into and hence, might be limited at 1.3050 strong support.

Meanwhile on the upside, 1.3200 region remains immediate strong resistance, which if conquered should pave way for an immediate up-move towards July monthly highs resistance near 1.3240-50 region before the pair continues with its upward trajectory towards its next major resistance near 1.3300 round figure mark.