USD/CAD comes down to mid-1.3200s

The USD/CAD pair stalled two consecutive days of recovery move and traded with mild negative bias through early European session on Friday.

On Thursday, the pair built on previous session's sharp recovery move from 2-1/2 month lows, led by hawkish Fed, before a fresh wave of selling pressure emerged near 1.3315 level. The pair has now dropped back to mid-1.3200s on Friday amid mildly weaker tone surrounding the US Dollar. 

The pair's retracement from higher levels lacked any fundamental drivers and hence, could be attributed to a mildly weaker tone surrounding the US Dollar. Adding to this, a modest recovery in oil prices, with WTI crude oil rebounding from one-month lows, also extended some support to the commodity-linked currency - Loonie, and collaborated to the offered tone surrounding the major.

Today's US economic docket features the release of housing market data and Prelim UoM Consumer Sentiment Index for June, which would now be looked upon for some fresh impetus later during the NA session.

Technical levels to watch

Immediate support is pegged near 1.3235 region, below which a fresh bout of selling interest has the potential to drag the pair below the 1.3200 handle back towards multi-month lows support near 1.3165 region. 

On the flip side, momentum above 1.3265-70 region could get extended back towards the 1.3300 handle, which if cleared might lift the pair towards 1.3325 level.