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    USD/CAD slammed below 1.2850 after Canadian CPI Haresh Menghani

    The USD/CAD pair remained well offered and extended its slide further below 1.2900 handle, breaking its six-day winning streak, to currently trade at session low level below 1.2850.According to the data released by Statistics Canada, the headline CPI for the month of May came-in to show a m-o-m rise of 0.4% vs 0.5% expected. On a yearly basis, the CPI rose 1.5% in the 12 month to May, showing deceleration from 1.7% recorded in April. The Bank of Canada's core index also slowed and increased 2.1% in the 12 months to May, after rising 2.2% in April.The USD/CAD pair extended its downslide despite of slightly softer-than-expected Canadian monthly CPI print. The sharp fall in the major could be attributed to a remarkable recovery staged by the black gold (oil), which has now erased most of Thursday's sharp losses after being slammed below $46.00/barrel mark, earlier on Friday.Moreover, a broadly weakening US Dollar is also exerting downward pressure on the USD/CAD pair. Nevertheless, the pair still seems to be headed towards registering a minor weekly gain, its first weekly gain in the previous four.Technical levels to watchWeakness below 1.2850 support has the potential to drag the pair below 1.2800 handle, towards 1.2785-80 support area. Slide below 1.2785-80 support is likely to get extended further towards next major support near 1.2735-30 region.On the flip side, 1.2900 round figure mark now seems to have turned as immediate resistance and is followed by resistance near 1.2965-70 area. Only a decisive move back above these resistance levels might negate expectations of further bearish move and pave way for further recovery for the pair.


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