USD/CAD extends corrective slide, drops to 1.3400 neighborhood

After seesawing between tepid gains and minor losses in the previous session, the USD/CAD pair resumed the near-term corrective slide and has now dropped to 1.3400 neighborhood.

Currently trading around 1.3420-15 band, the pair extended the corrective slide from the vicinity of 1.3600 (multi-month high) touched at the beginning of this week. The overall US Dollar Index, which measures greenback's performance against six major currencies, witnessed a brief pause in the post-election rally and is contributing to the pair's ongoing slide on Thursday. 

Adding to this, recovery in crude oil prices is further boosting demand for the commodity-linked currency - Loonie and exerting selling pressure around the major. However, market expectations of an eventual Fed rate-hike in December might continue to underpin the greenback and limit any further downslide.

Next in focus would be US macro releases, featuring CPI print for October, housing data (building permits and housing starts) and Philly Fed Manufacturing Index, will grab traders attention during early NA session. Also in focus would be the Fed Chair Janet Yellen's testimony, which would be looked upon for additional clues over the possibilities of December Fed rate-hike decision. 

Technical levels to watch

A follow through selling pressure below 1.3400 handle, the corrective slide could get extended towards 1.3355-50 horizontal support before eventually dropping to test sub-1.3300 area (1.3290-85 support). On the upside, 1.3445 level (session peak) might now act as immediate resistance and is followed by resistance around 1.3500 psychological mark.