USD/CAD tumbles to lows near mid-1.2400s

The USD/CAD pair came under some renewed selling pressure on Tuesday and has now retreated around 80-pips from session high level of 1.2534.

Currently trading around mid-1.2400s, the pair has now reversed all of the previous session's recovery gains from monthly lows amid persistent greenback selling bias. Fresh concerns over the economic impact caused by Hurricane Harvey continued denting the already weaker sentiment and added the bucks downward momentum. 

In fact, the key US Dollar Index broke below the 92.00 handle to hit the lowest level since January 2015 and has been one of the key factors driving the pair lower on Tuesday. 

Meanwhile, a mildly positive trading sentiment around crude oil prices was also seen lending support to the commodity-linked currency - Loonie and further collaborated to the pair's slide. 

The pair remains within striking distance of July daily closing lows support near 1.2430 area as traders now look forward to today's economic docket, featuring the release Raw Materials Price Index (RMPI) from Canadian, which will be followed by CB Consumer Confidence Index from the US.

Technical levels to watch

Immediate support remains near 1.2430 area, below which the pair is likely to accelerate the fall towards the 1.24 handle. On the upside, any recovery attempts beyond 1.2470 level might now confront some fresh supply near the 1.25 handle, above which a bout of short-covering could lift the pair towards 1.2555-60 horizontal resistance.