USD/CAD flirting with session lows, around 1.2520 region

The USD/CAD pair came under some renewed selling pressure on Tuesday and extended its post-NFP retracement from over 1-month tops. 

The pair has now dropped to a 3-day low, near the 1.2520-15 region, and was being weighed down by the prevalent negative trading sentiment around the US Dollar amid softer US Treasury bond yields. 

Adding to this, a modest uptick in crude oil prices was also seen benefitting the commodity-linked currency - Loonie and further collaborated to the pair's offered tone through early European session on Tuesday.

The pair, however, has managed to hold its neck above the key 1.25 psychological mark as traders now look forward to the Canadian housing market data for some fresh impetus.

Meanwhile, growing prospects for additional Fed rate hike move in December might limit deeper losses and the current pull-back might still be utilized as an opportunity to initiate fresh long positions.

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Technical levels to watch

Bulls would be disheartened if the pair fails to defend the 1.25 handle, below which the corrective slide could get extended towards 1.2475-70 horizontal zone en-route 1.2420 support area. 

On the flip side, 1.2550 area now seems to have emerged as immediate resistance, above which the pair is likely to make a fresh attempt towards reclaiming the 1.2600 handle.