After failing to extend its bounce beyond 200-day SMA, the USD/CAD pair erased all of its recovery gains and traded in neutral territory following the release of Empire State Manufacturing Index.
According to the data released just a while ago, Empire State Manufacturing Index fell further into negative territory and came-in at -6.8, falling short of consensus estimates pointing to a rise to +1. Immediately after the release, the pair dropped to 1.3120 but managed to reverse quickly and is currently trading around 1.3140-35 region.
Further downslide, however, was limited as investors now await for the release of Capacity Utilization Rate and Industrial Production data from the US ahead of Federal Reserve Governor Stanley Fischer's speech, which would provide fresh impetus for the pair.
Technical levels to watch
Immediate downside support is pegged at 1.3115-10 area (session low) below which the pair is likely to accelerate the slide towards 50-day SMA support near 1.3070 region. Meanwhile on the upside, recovery attempts above 1.3170 might continue to confront resistance at 200-day SMA near 1.3185, which if conquered seems to lift the pair beyond 1.3200 handle towards its next resistance near 1.3250-60 region.