USD/CAD witness a tepid bounce after US data, struggling below 1.2900

US economic releases failed to provide any respite for the US Dollar bulls, with the USD/CAD pair still continuing with its struggle to recover back above 1.2900 handle. 

According to the data released just a while ago, retail sale posted a growth of 0.6% during the month of June and core retail sales (excluding automobiles) rose by 0.7%. The inflation report for the month of June was in-line with estimates with both CPI and core CPI recording a rise of 0.2% on a monthly basis. 

Meanwhile, the Empire state manufacturing index dipped to 0.6 in July as compared to 5.1 expected and 6.0 recorded in June. 

Elsewhere, Canadian monthly manufacturing sale contracted by 1.0% during May as compared to a growth of 1.0% in the previous month.

Although the releases failed to lift the pair but has temporarily halted the ongoing slide from a multi-week high level touched during the early part of the week. 

Technical levels to watch

In order to negate any further bearish bias, the pair need to attract strong buying interest and move back above 50-day and 100-day SMA resistance levels around 1.2950 and 1.2975 region, respectively, which if conquered would pave way for additional near-term upward trajectory initially towards 1.3040 horizontal resistance and eventually towards 1.3100 round figure mark.

Meanwhile, on the downside, weakness below 1.2850 is likely to find immediate support near 1.2820, marking a short-term ascending trend-line, which if broken seems to drag the pair back towards 1.2740-35 horizontal support.