USD/CAD slides to 1-1/2 month low near 1.3230 level

The greenback selling pressure remains unabated on Thursday, dragging the USD/CAD pair to its lowest level since late Feb.

Overnight comments by the US President Donald Trump, that the US currency was getting "too strong" and could hurt the economy, continues to weigh on the US Dollar across the board. This coupled with a slump in the US treasury bond yields is further collaborating to the pair's sharp downslide to 6-week lows. 

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The Canadian Dollar is also benefitting from the Bank of Canada's (BOC) upwardly revised growth forecast. On Wednesday BOC, on expected lines, left its benchmark interest rate unchanged, but raised its growth forecast for 2017 in wake of a recovery in crude oil prices. 

Meanwhile, a subdued price-action surrounding oil markets has failed to provide any fresh impetus to the commodity-linked currency - Loonie. In fact, WTI crude oil seems to have entered a consolidative phase around $53.00/barrel mark and the greenback price-dynamics remains an exclusive driver of the pair's sharp depreciating move since NY trading session on Wednesday.

On the economic data front, Canadian manufacturing sales and NHPI are due for release later during early NA session. From the US, the release of PPI, weekly jobless claims and Prelim UoM Consumer Sentiment would also be looked upon for some short-term trading impetus.

Technical levels to watch

Immediate support is pegged at 200-day SMA near 1.3215 region, below which the pair might turn vulnerable to head back towards the 1.3100 handle with some intermediate support near mid-1.3100s.

On the upside, any recovery attempts beyond 1.3265 level might now confront strong hurdle near 1.3280-85 confluence region, comprising of 50-day and 100-day SMAs. Only a convincing break through this immediate strong hurdle might now negate any bearish bias and lift the pair back towards 1.3325 horizontal resistance.