USD/CAD slides further below 200-DMA

The greenback remained well offered across the board, with the USD/CAD pair building on to its overnight sharp slide to nearly two-week lows. 

Currently hovering around 50-day SMA near 1.3030-40 region, the pair dropped further below 200-day SMA support near 1.3065 region and extended the reversal from multi-week highs, following a brief consolidation phase witnessed during the early part of the week. 

The pair on Wednesday came under intense selling pressure after the FOMC voted to leave interest rates unchanged, albeit signaled a possibility of a rate-hike by the end of this year. 

Meanwhile, the ongoing recovery trend in crude oil prices is further assisting the commodity-linked currency - loonie. WTI crude oil was seen building on to Wednesday's gains led by an unexpected decline in US stockpiles and is now inching closer to $46.00/barrel mark. 

Later during NY trading session, weekly jobless claims, existing home sales data and CB leading indicator could help traders to grab some short-term trading opportunities. 

Technical levels to watch

A follow through selling pressure is likely to turn the pair vulnerable to head back towards testing 100-day SMA support near 1.3000 psychological mark, which if broken would open room for a further depreciating move towards 1.2925-20 support area. 

On the upside, 200-day SMA near 1.3065 region now becomes immediate resistance above which the pair could make a fresh attempt to reclaim 1.3100 handle and head towards testing 1.3125-30 horizontal resistance.