USD/CAD hangs closer to yesterday’s near 3-week lows around 1.36 handle

The USD/CAD pair remained under some selling pressure for the second consecutive day and hangs closer to near three-week lows, around the 1.3600 handle, touched yesterday.

Buoyant sentiment surrounding oil markets, with WTI crude oil holding on to its gains led by Saudi Arabia and Russia's agreement on an extension of OPEC-led production-cut deal, continued underpinning demand for the commodity-linked currency - Loonie.

This coupled with persistent greenback selling pressure, against the backdrop of recent slew of disappointing US macro data, further collaborated to the offered tone surrounding the major. Softer US macro data now seems to be denting expectations for a faster Fed rate-tightening cycle and hence, the ongoing slide in the US treasury bond yields have failed to provide any immediate respite for the US Dollar bulls. 

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Despite of today's slide, the pair has managed to hold above the 1.3600 handle and hence, traders are likely to wait for a decisive break through the said support before committing to the near-term bearish bias. 

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On the economic data front, the release of US housing market and industrial production data would now be looked upon to grab some short-term trading opportunities later during the NA session.

Technical levels to watch

On a sustained break below the 1.3600 handle, the pair is likely to extend the near-term downward trajectory towards the key 1.3500 psychological mark, with some intermediate support near 1.3565-60 region. On the flip side, any recovery attempts now seems to confront immediate resistance near 1.3645-50 area, above which  the pair is likely to aim back towards retesting the 1.3700 handle.