USD/CAD drops to session low at 1.3025 after data

The US Dollar seems to have caught up a fresh bout of selling pressure, with the USD/CAD pair dropping to session low level of 1.3025. 

According to the data, Canada May wholesale trade sales recorded a growth of 1.8% as against 0.2% (revised from earlier 0.1%) rise posted in the previous month and was also better-than 0.2% expected. 

From the US, weekly jobless claims for the week ending July 15 came-in at 253k, which was much lower-than 265 expected and last week's 254k. Meanwhile, the Philly Fed Manufacturing index disappointed and fell sharply to -2.9 for July, which was way below forecasts of 5 and last month's 4.7.

After an initial muted reaction to the releases, the pair weakened as the greenback started losing traction primarily led by a bullish spike in the shared currency. The ongoing ECB press conference might continue to infuse volatility in the FX market and the pair might continue to be driven by sentiment surrounding the US Dollar. 

Technical levels to watch

On the downside, 1.3000 psychological mark is likely to protect immediate downside. Any weakness below this immediate support is likely to be bought into and hence, is likely to be short-live till 1.2960-65 moving averages confluence support (50-day and 100-day SMAs).

On the flip side, the pair needs to sustain its strength above 1.3050-70 immediate resistance, which if conquered seems to lift the pair immediately towards 1.3140 resistance (July 11 high) before heading towards 1.3190 resistance (May 24 high).