USD/CAD slides to fresh 6-week lows, around mid-1.2600s
• On offers for the third straight session.
• Reviving USD demand fails to lend support.
• Economic data eyed for fresh impetus.
The USD/CAD pair extended last week's upbeat Canadian data-led downfall and touched a 6-week low near mid-1.2600s on Tuesday.
The pair, so far, traded with a mild negative bias for the third consecutive session, with traders largely negating some renewed US Dollar buying interest.
Against the backdrop of the latest positive developments surrounding the US tax reform bill, a goodish uptick in the US Treasury bond yields underpinned the greenback demand but did little to stall the pair's fall to its lowest level since Oct. 25.
Meanwhile, a softer tone around crude oil prices, which tends to weigh on the commodity-linked currency - Loonie, might now help limit deeper losses, at least for the time being.
Traders would now take cues from today's economic docket, featuring the release of trade balance data from Canada and the US and the US ISM non-manufacturing PMI.
Technical levels to watch
A follow-through selling pressure has the potential to continue dragging the pair towards the 1.2600 handle en-route 100-day SMA support near the 1.2570-65 region.
On the upside, any meaningful recovery attempts might seems to confront immediate resistance near the 1.2700 handle, which if cleared might trigger a short-covering bounce towards 1.2760-65 hurdle.