USD/CAD refreshes session low near mid-1.2400s, NFP in focus

The USD/CAD pair stalled the early European session modest recovery attempt just ahead of the key 1.2500 and has dropped to session lows, around mid-1.2400s.

The pair's latest leg of slide over the past couple of hours lacked any catalyst and hence, could have been primarily driven by a modest US Dollar pullback in the pre-NFP repositioning trade.

This coupled with a goodish recovery in crude oil prices provided an additional boost to the commodity-linked currency - Loonie and further collaborated to the pair's slide back closer to 4-week lows touched earlier this week.

Against the backdrop of yesterday's data, showing subdued inflationary pressure in the US and strong Canadian economic growth, even a slightest of disappointment from the NFP report would turn the pair vulnerable to resume with its prior bearish trajectory.

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Technical levels to watch

On a sustained break through 1.2440 level, the pair seems to accelerate the slide towards the 1.2400 handle before eventually aiming to test its next support near mid-1.2300s.

Meanwhile, on the upside, any recovery attempts might continue to face some fresh supply near the 1.25 handle, which if cleared might trigger a short-covering bounce back towards 1.2555-60 horizontal zone en-route the 1.2600 mark.