USD/CAD hits fresh session low ahead of CAD housing data
• USD weakness help offset softer oil prices.
• Canadian housing data eyed.
The greenback held weaker through the early NA session, now pushing the USD/CAD pair to a fresh session low in the 1.2930 region.
The pair extended overnight retracement and has now reversed over 80-pips from overnight swing highs, beyond the 1.2900 handle. Uncertainty over the US tax prompted some fresh US Dollar selling and has been one of the key factors weighing on the major.
Meanwhile, some follow-through profit-taking pressure around crude oil prices, which tends to influence demand for the commodity-linked currency - Loonie, did little to lend support and stall the pair's slide on Wednesday.
The fall, however, has been limited as traders now look forward to a relatively thin economic docket, highlighting the release of housing starts and building permits data from Canada. Also in focus would be the weekly EIA report on US crude oil inventories, due later during the NY session and provide some meaningful trading opportunities.
• Canada: Housing starts and building permits in focus – TDS
Technical levels to watch
Immediate support remains near the 1.2700 handle, which if broken is likely to accelerate the fall towards 100-day SMA support near the 1.2600 handle with some intermediate support near 1.2660 level.
On the flip side, momentum above mid-1.2700s now seems to face resistance near 1.2780 level, above which the pair is likely to aim towards surpassing the 1.2900 handle and test 1.2915 supply area.