USD/CAD pare losses ahead of economic releases

Having posted a session low around mid-1.2800s, the USD/CAD pair has managed to recover majority of its lost ground and is now trading with only marginal loss around 1.2875-80 band. 

Maintaining its high degree of correlation, retracement in crude oil prices from session high back close to $46.00 handle weighed on the Canadian Dollar and helped the pair to bounce-off session low. Moreover, a tepid greenback recovery also contributed to the pair's up-tick in the past few hours.

Next in focus would be building permits and NHPI release from Canada, while US economic calendar features the release of weekly jobless claims. 

Technical levels to watch

A follow through buying interest above 1.2900 round figure mark has the potential to boost the pair further towards 100-day SMA resistance near 1.2940-45 region. Meanwhile on the downside, weakness below session low support near 1.2850 now seems to drag the pair through Tuesday's low and weaken it further below 1.2800 handle towards its next major support near 1.2775-70 region.