USD/CAD down for sixth straight session, hovering around 100-DMA

Having posted a session high of 1.2976, the USD/CAD pair resumed its near-term downward trajectory and turned lower for sixth consecutive session to currently trade at session low near 1.2930.

Continuing strength in crude oil prices has been a key factor extending support to the Canadian Dollar. Adding to this, fading expectations that the Fed will further raise interest rates in 2016 is weighing on the greenback and driving the USD/CAD major lower. 

The pair has repeatedly failed to hold its up-move beyond 200-day SMA and hence, a sustained weakness below 100-day SMA might turn it vulnerable to further downslide in the near-term.

Technical levels to watch

From current levels, last week's swing low near 1.2925 will be looked upon to extend immediate support, below which the pair seems to immediately drop below 1.2900 handle to test to 1.2870-60 strong support. 

Alternatively, recovery back above 1.2950, leading to a momentum beyond session high resistance near 1.2975, should lift the pair back towards 1.3020-25 intermediate resistance before the pair makes a fresh attempt to retest the very important 200-day SMA resistance near 1.3075-80 region.