USD/CAD bounces off 50-DMA support, but keeps the red below 1.25 mark

The USD/CAD pair found some fresh buying interest near 50-day SMA support and has now recovered majority of its early lost ground to weekly lows. 

The pair extended previous session's retracement slide from over one-month tops and dropped an intraday low level of 1.2457. However, growing prospects for additional Fed rate hike move in December continued supporting the US Dollar and helped limit deeper losses. 

Moreover, the ongoing corrective slide in oil prices, with WTI crude oil flirting with the key $50.00 psychological mark, weighed on the commodity-linked currency - Loonie and helped the pair to recover around 20-25 pips from session lows. 

Today's US economic docket features the release of ADP report and ISM non-manufacturing PMI, which along with the release of EIA report on weekly US crude oil inventories, would now be looked upon for some fresh impetus. Later during the day, the Fed Chair Janet Yellen's scheduled speech might also infuse some volatility in the FX market. 

   •  CAD keeps the firm note – TD

Technical levels to watch

A follow through up-move beyond 1.2480 level now seems to assist the pair to surpass the 1.25 handle and aim towards retesting yesterday's swing high resistance near the 1.2535-40 region.

On the downside, the 1.2460-55 region (50-day SMA) remains immediate support to defend, which if broken is likely to accelerate the fall towards 1.2425 intermediate support ahead of the 1.2400 handle.