USD/CAD flirting with 2-week lows at 1.30 after US jobless claims

Having broken through 200-day SMA important support, the USD/CAD pair came under renewed selling pressure and accelerated its downslide closer to 1.3000 psychological mark.

Meanwhile, offered tone around the greenback, after Fed inaction on Wednesday, has failed to extend any support and halt the pair's slide of over 230-pips (in just two trading session) from the vicinity of multi-week highs. 

Even a better-than-expected release of weekly jobless claims on Thursday failed to provide any respite for the US Dollar bulls. The US initial jobless claims fell to 252K during the week ended on September 16 as against expected rise to 262K.

Maintaining their high degree of correlation, a fresh leg of up-move in crude oil prices (back above $46.00/barrel mark) is also benefitting the commodity-linked currency - loonie, and contributing to the pair's sharp fall for the second consecutive session. 

Other US economic data scheduled for release on Thursday include – existing home sales and CB leading indicator.

Technical levels to watch

Below 1.3000 mark, 100-day SMA near 1.2990 level could provide some immediate support. Failure to hold 100-day SMA support might continue to drag the pair further towards 1.2950-40 support. Meanwhile on the upside, recovery back above 1.3030 could assist the pair to stage some additional recovery, which now seems to be capped at 200-day SMA near 1.3060-65 region.