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   “¢   USD bulls remain on the defensive despite a goodish pickup in the US bond yields.
   “¢   Positive oil prices continue to underpin Loonie and capped any recovery attempt.

The USD/CAD pair struggled to register any meaningful recovery and remained within striking distance of six-week lows set in the previous session.

On Wednesday, the pair came under some intense selling pressure and retreated over 140-pips from an intraday high level of 1.3166 to finally break below the 50-day SMA support.  

The selling pressure now seems to have abated a bit, albeit a combination of factors, ranging from persistent US Dollar selling bias and rising oil prices did little to provide any meaningful lift.  

A goodish pickup in the US Treasury bond yields failed to revive the USD demand, while bullish crude oil prices continued underpinning the commodity-linked currency – Loonie and eventually kept a lid on any attempted recovery move.  

Moving ahead, today’s US economic docket, highlighting the release of durable goods orders will now be looked upon for some fresh impetus later during the early North-American session. This coupled with Friday’s advance US Q2 GDP growth figures will play an important role in determining the pair’s next leg of directional move.

Technical levels to watch

The key 1.3000 psychological mark is likely to protect the immediate downside, which if broken might accelerate the fall towards 1.2970 intermediate support en-route the 1.2920-15 region. On the flip side, any meaningful up-move now seems to confront resistance near the 1.3080-85 region (50-day SMA), above which a bout of short-covering could lift the pair towards 1.3135-40 horizontal zone.