USD/CAD hammered down to 1.3300 mark, lowest since April 17

   •  The USD pressurized by the latest disappointment from the monthly jobs report.
   •  Upbeat Canadian employment details provide a strong boost to the Canadian Dollar.
   •  Bullish Crude Oil prices underpin Loonie and further contribute to the selling pressure.

The USD/CAD pair tumbled to over seven-week lows in reaction to diverging US-Canadian jobs report, with bears now eyeing a follow-through weakness below the 1.3300 handle.

The US Dollar tumbled across the board after the headline NFP print showed that the US economy added fewer-than-expected 75K jobs in May and average hourly earnings slowed to 3.1% yearly pace during the reported period.

Apart from the USD weakness, a combination of supporting factors provided a strong boost to the Canadian Dollar and further collaborated to the pair's latest leg of a sudden drop of over 50-pips to the lowest level since April.

The prevalent bullish sentiment around Crude Oil prices underpinned demand for the commodity-linked currency - Loonie, which got an additional boost from better-than-expected Canadian monthly employment details.

According to Statistics Canada, unemployment rate in Canada unexpectedly fell to 5.4% in May from 5.7% in April while the number of employed people rose by 27.7K as against consensus estimates pointing to an increase of only 8K. 

Apart from the fundamental factors, possibilities of some short-term trading stops being triggered on a sustained weakness below 100-day SMA might have further collaborated towards aggravating the selling pressure.

With Friday’s key macro data out of the way, a follow-through downfall, possibly towards challenging the very important 200-day SMA support for the first time since early-March, now looks a distinct possibility.

Technical levels to watch