USD/CAD slides further below 100-DMA, tests sub-1.2900 level

The USD/CAD pair maintained its offered tone below 100-day SMA support and dropped below 1.2900 round figure mark, the lowest level since July 26. 

Currently hovering around 1.2900 handle, off session low level of 1.2887, the pair is trading weaker for fourth consecutive session amid fading expectations of an eventual Fed rate-hike action in September. Even retracement in crude oil prices (back below $45.00/barrel mark) has failed to provide any respite for the bulls.

Moving ahead, today's release of US ISM non-manufacturing PMI for August will catch the spotlight later during NY trading session. In the meantime, broader sentiment surrounding the greenback and crude oil prices would remain the key drivers for the pair's next leg of move. 

Technical levels to watch

On a sustained weakness below 1.2900 handle, the pair seems to immediately head towards 1.2860 support area before eventually dropping to its next support near 1.2835-30 region. On the flip side, any recovery attempt might now confront immediate strong resistance at 100-day SMA near 1.2940 region above which the momentum could further get extended back towards 1.3000 psychological mark.