USD/CAD slides further below 1.3400 handle ahead of data

The USD/CAD pair remained well-offered for the third consecutive day and broke through 1.3400 handle to test the lowest level since Nov. 11.

Currently trading around 1.3385-90 band, upbeat sentiment surrounding oil markets, with WTI crude oil posting a strong 1.5% gains to $49.00 handle, is boosting demand for the commodity-linked currency - Loonie. Moreover, extension of the US Dollar's profit-taking retracement move for second straight session, following its post-US presidential election rally to 13-year high, is further contributing to the pair's ongoing corrective slide. 

On economic data front, Canadian monthly retail sales data and US existing home sales data will be in focus during NA session on Tuesday.

However, market participants will remain focused on this week's key releases from the US - durable goods orders and FOMC meeting minutes, for fresh clues over the Fed's near-term monetary policy outlook and eventually provide further impetus for the pair's next leg of directional move in the near-term.

Technical levels to watch

Immediate support on the downside is pegged near 1.3365-60 region below which the pair could accelerate the slide immediately towards 1.3340 support before eventually dropping to test sub-1.3300 support area near 1.3285-80 region. Meanwhile on the upside, sustained recovery momentum back above 1.3400 handle, leading to a subsequent strength beyond 1.3415-20 resistance, seems to lift the pair immediately towards 1.3450 horizontal resistance en-route its next major resistance near 1.3520 level.

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