USD/CAD slides below 1.2900 handle ahead of US GDP print

The USD/CAD pair remained well offered below 100-day SMA and has now slipped below 1.2900 handle as investors keenly await for the Fed Chair Janet Yellen's speech for fresh inputs on the central bank's monetary policy outlook.

Despite of weakness surrounding WTI crude oil, the pair extended its slide after repeated failed attempts to move back above 100-day SMA resistance, currently near 1.2925-30 region. Uncertainty surrounding eventual Fed rate-hike decision has been the key factor weighing on the greenback. Hence, any hawkish signals would fuel expectations that the Fed would go ahead and raise interest-rates, sooner rather than later, which would eventually drive the US Dollar higher in the near-term.

On the economic data front, preliminary release of US GDP for Q2 2016 will be in focus during early NA trading session, while Yellen speech would remain the key determinant of the pair's near-term direction.

Technical levels to watch

On a sustained weakness below 1.2900 handle the pair seems to extend its slide towards weekly lows support near 1.2860, below which the pair is likely to accelerate the downfall towards initially towards 1.2800 round figure mark ahead of a strong support near 1.2770 level.

Meanwhile on the upside, 100-day SMA near 1.2930 region remains immediate strong resistance to conquer, which if cleared decisively should lift the pair immediately towards 1.3000 psychological mark before extending its near-term recovery trend back towards the very important 200-day SMA resistance near 1.3060-65 region.