USD/CAD remains well offered below 1.2950 after data

Following a knee-jerk downward spike to 1.2900 handle, the USD/CAD pair bounce-off session lows to currently trade around 1.2920-25 band after the release of strong US economic data. 

According to the data released a short while ago, US weekly jobless claims remained unchanged at 254,000 against expectations of a rise to 263,000. Meanwhile, wholesale price index (WPI) posted its biggest gain in over a year and came-in well above forecast at 0.5% m-o-m.

On the Canadian economic data front, New Housing Price Index (NHPI) posted a rise of 2.7% in May on a yearly basis and a increased 0.7% on monthly basis.

Upbeat economic data from Canada failed to provide any respite for the US Dollar against its Canadian counterpart. Moreover, upbeat sentiment surrounding crude oil prices might support some buying interest around the Canadian Dollar and hence could restrict immediate sharp recovery for the pair. 

Technical levels to watch

On a sustained weakness below 1.2900-1.2880 immediate support, the pair seems to immediately drift to a short-term ascending trend-line support near 1.2825-20 region, which if broken opens room for further near-term weakness for the pair.

Meanwhile on the upside, recovery momentum above 1.2965-75 confluence region (50-day and 100-day SMAs) would set the stage for a swift recovery beyond 1.3000 psychological mark, towards its next major resistance near 1.3100 round figure.