USD/CAD struggles to sustain above 1.24 mark, US data & BoC's Poloz eyed

For the second straight session, the USD/CAD pair failed to sustain early strength beyond the 1.2400 handle and retreated over 30-pips from session tops.

The pair met with some fresh supply near the 1.2410-15 region and the retracement from closer to three-week highs lacked any fundamental trigger and could be solely attributed to a modest US Dollar pull-back. 

The pair, however, has managed to hold in positive territory, for eighth session in the previous nine, amid some initial signs of profit taking slide in crude oil prices, which tends to weigh on the commodity-linked currency - Loonie.

Currently trading around 1.2380-85 band, investors now look forward to the US economic docket, featuring the release of durable goods orders and pending home sales data. 

   •  US: Durable goods orders and Pending home sales in focus – Nomura

Apart from the US macro data, the release of EIA weekly crude oil inventories data and a scheduled speech by the BOC Governor Stephen Poloz would provide some fresh impetus for the major. 

   •  CAD: Poloz and GDP data major event risks - ING

Technical levels to watch

Bulls would be eyeing for a sustained move beyond 1.2410-15 area, above which the pair seems all set to aim towards testing 50-day SMA hurdle near the 1.2465 region.

On the flip side, a follow through retracement below 1.2370 level is likely to find support near 1.2330 area, which if broken is likely to drag the pair toward testing sub-1.2300 level.