USD/CAD: on track for its lowest weekly close since late Feb.

The USD/CAD pair remained well-offered through mid-European session and has now dropped to fresh session low near 1.3230 region.

The pair has now reversed all of the hawkish Fed driven tepid recovery gains recorded over the past couple of day and remains on track for its lowest weekly close since late Feb. 

Today's slide could be attributed to a softer tone around the US Dollar and a modest recovery in oil prices, which tends to boost demand for the commodity-linked currency - Loonie. 

With oil price-dynamics acting as one of the key factors driving the pair on the last trading day of the week, traders would now take cues from the latest Baker Hughes rig count data, due later during the NY session.

In the meantime, the US economic docket featuring the release of housing data and Prelim UoM Consumer Sentiment index for June would be looked upon for some impetus during early NA session.

   •  US: Fed speak, housing starts and consumer sentiment in focus - TDS

Technical levels to watch

A follow through weakness below 1.3210 level now seems to drag the pair below the 1.3200 handle towards retesting 2-1/2 month lows support near 1.3165 region. On the upside, recovery back above mid-1.3200s, leading a subsequent move above 1.3270 level, is likely to lift the pair back towards reclaiming the 1.3300 handle.