USD/CAD grinding lower, inching towards 1.2900 level

Having posted a daily high at 1.2976, the USD/CAD pair resumed its six-day old downward trajectory to currently trade at the lowest level since July 15.

A broader retracement in the greenback, as measured by the overall US Dollar Index, coupled with buoyant sentiment surrounding crude oil prices is helping the commodity-linked currency - the Canadian Dollar, and exerting intense selling pressure around the USD/CAD pair. 

Extending its downward trajectory, the pair has now dipped below 100-day SMA to a fresh 5-week low level and is now within striking distance of hitting 1.2900 mark.

With hourly RSI readings (1 and 4-hourly) still above near-term oversold conditions (above 30), the pair might continue drifting lower ahead of the release of Empire State Manufacturing Index, later during NA trading session.

Technical levels to watch

We can see next resistance ahead at 1.2943 (Daily 100 SMA), 1.2945 (Monthly Low), 1.2953 (Weekly Low) and 1.2957 (Hourly 20 EMA). Support below can be found at 1.2915 (Daily Low), 1.2886 (Daily Classic S2), 1.2854 (Weekly Classic S1) and 1.2849 (Daily Classic S3).