USD/CAD reverses part of Wednesday’s BOC-led recovery gains

The USD/CAD pair resumed with its downward trajectory and reversing part of its Wednesday's recovery gains to currently trade around 1.2860-55 band. 

On Wednesday, the pair rebounded from 3-week lows after BOC rate statement showed risk to the central bank's inflation have tilted to the downside, which could eventually lead to cautious monetary policy stance. BOC, on expected lines, left is monetary policy unchanged and held overnight rate steady at 0.5%. 

The pair, however, trimmed its gains amid strong rally in crude oil prices that extended support to the commodity-linked currency - Loonie. Further up-move in crude oil prices on Thursday coupled with renewed selling pressure surrounding the greenback are contributing to the major's downslide on Thursday.

Later during NA trading session, building permits and NHPI release from Canada, and US weekly jobless claims will be in focus.

Technical levels to watch

Immediate support is seen at 1.2827 (Tuesday's low) below which the pair is likely to weaken below 1.2800 handle and head towards testing its next major support near 1.2775-70 region. Meanwhile on the upside, bullish momentum back above 1.2900 round figure mark seems to boost the pair further towards 100-day SMA resistance near 1.2940-45 region.