USD/CAD slide back closer to near 2-month lows

   •  Subdued USD price-action prompts some fresh selling.
   •  Bullish oil prices add to the downward pressure.

The USD/CAD pair came under some fresh selling pressure on Friday and moved back within striking distance of near 2-month lows touched on Wednesday.

The pair did attempt a recovery on Thursday and was being supported by a goodish pickup in the US Dollar demand. Bulls, however, struggled above the 1.2600 handle and the pair failed ahead of the very important 200-day SMA support-turned-resistance. 

The ongoing bullish run-up in crude oil prices underpinned the commodity-linked currency - Loonie and kept a lid on the pair's overnight modest recovery attempt. 

With oil prices now entering a bullish consolidation phase, a mildly weaker USD price-action prompted some fresh selling and was seen as one of the key factors behind the pair's slide to 1.2560 area, within striking distance of Wednesday's swing low.

Today's US economic docket, featuring the release of Prelim UoM Consumer Sentiment and JOLTS Job Openings data, would now be looked upon for some short-term trading impetus on the last trading day of the week. 

Technical levels to watch

Bulls might try and defend 1.2550-45 support area, below which the pair seems all set to head towards testing the key 1.2500 psychological mark. On the upside, the 1.2600 handle now seems to have emerged as an immediate resistance, which if cleared might trigger a short-covering bounce towards the 1.2630 region (200-day SMA).