USD/CAD down for third consecutive day, trading just above 1.2800

Extending its down-slide for third consecutive day further below 50-day SMA, the USD/CAD pair has now dropped to 1.2800 handle as US Dollar fails to find a sustainable buying interest after Friday's awful jobs report.

In the previous trading session, the pair failed to hold 50-day SMA support and fell sharply on stops getting triggered below 1.2900 handle. Moreover, with a high degree of correlation with crude oil prices, the Canadian Dollar seems to gain traction on upbeat oil prices that now seems to make a fresh attempt to capture the very important $50.00/barrel psychological mark.

Later during NA session, investors might take trading cues from the scheduled release of Ivey PMI from Canada while the broader momentum might continue to be derived from movement in oil prices and sentiment surrounding the US Dollar.

Technical levels to watch

On a sustained weakness below 1.2800 handle, the pair could immediately slide to 1.2770 support (nearing May 12 lows) and could extend its downslide towards its next major horizontal support near 1.2740-35 area.

Meanwhile on the upside, rebound from 1.2800 handle, and a subsequent momentum above 1.2850 resistance, might now confront strong resistance at 50-day SMA near 1.2890-95 region. Only a sustained strength back above 50-day SMA resistance might negate possibilities of any further near-term downfall for the pair.