USD/CAD flat-lined at 1.3155, eyeing US CPI for fresh impetus

Following Thursday's reversal from 7-week high of 1.3236, the USD/CAD pair traded within 30-35-pips trading band and is currently hovering around mid-1.3100s.

On Thursday, the pair came under intense selling pressure following the release of disappointing US economic releases, which dampened Fed rate-hike expectations. Moreover, traders would have been inclined to take some profits off the table after the pair's relentless rally of over 400-pips from last week's low near 1.2825 level. 

Meanwhile, softer tone around crude oil prices seem to have limited further downslide and led to a range-bound price action ahead of today's CPI release from the US, later during NA trading session. Also in focus on Friday would be Canadian manufacturing sales data and preliminary release of UoM US Consumer Sentiment index.

Technical levels to watch

Immediate support is pegged near 1.3130 level below which the pair could slide to 1.3100 handle en-route 200-day SMA support near 1.3065-60 region. On the upside, 1.3195-1.3200 area now becomes immediate resistance, which if cleared is likely to assist the pair to aim back towards testing July swing high resistance near 1.3250-55 region.