USD/CAD edges lower toward 1.30 on broad-based USD weakness

• Canadian existing home sales fall to 0.9%.
• NY Empire State Manufacturing Index disappoints in September.
• US Dollar Index extends losses to mid-94s.

After spending the majority of the day in a tight range below the 1.3050 mark, the USD/CAD pair came under a renewed pressure in the last hour and fell to a fresh session low of 1.3011. As of writing, the pair was trading at 1.3016, losing 0.13% on the day.

The Federal Reserve Bank of New York on Monday announced that the headline business activity of the regional manufacturing survey plummeted to 19 in September from 25.6 in August and missed the analysts' estimate of 23. The US Dollar Index, which failed to break above the critical 95 handle regardless of the strong recovery on Friday, edged lower following the dismal data and was last seen down 0.4% on the day at 94.56.

On the other hand, the data from Canada revealed that existing home sales increased by 0.9% in August following the July's 1.8% growth to make it difficult for the loonie to preserve its bullish momentum. Meanwhile, the barrel of West Texas Intermediate is trading at $69.30, adding 0.5% on the day and not providing a strong catalyst for the commodity-sensitive CAD.

With an empty economic calendar in the remainder of the day, the pair could continue to fluctuate in its daily range without making a decisive move in either direction.

Technical levels to consider

The initial support for the pair could be seen at 1.3000 (psychological level) ahead of 1.2950 (Aug. 27 low) and 1.2915 (200-DMA). On the upside, resistances align at 1.3055 (20-DMA), 1.3090 (100-DMA) and 1.3170 (Sep. 11 high).