USD/CAD off lows, still down little around 1.3465

The USD/CAD pair has managed to recover majority of its early lost ground to session lows near 1.3440 region and now seems to be attempting a move towards the top end of daily trading range.

Currently trading around 1.3470 region, the pair's latest leg of recovery move over the past couple of hours could be attributed to a mildly softer tone surrounding oil prices. In fact, WTI crude oil now seems to have entered a bearish consolidation phase and has failed to provide any fresh bullish impetus to the commodity-linked currency - Loonie. 

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However, an offered tone surrounding the greenback, with the key US Dollar Index hanging closer to multi-month lows amid sliding US treasury bond yields, did little to extend any additional support and lift the pair back into positive territory. 

Moreover, over the past three weeks the pair has repeatedly failed to sustain its move beyond the key 1.35 psychological mark and hence, it would be prudent to wait for a strong follow through recovery before confirming that the pair might have bottomed out in the near-term.

Technical levels to watch

Immediate resistance is pegged near 1.3485 level, above which the pair is likely to surpass the 1.35 handle and aim towards retesting 1.3525 resistance en-route last Friday's swing high resistance near mid-1.3500s.

On the flip side, weakness below 1.3450-40 area now seems to drag the pair back towards 1.3405-1.3400 intermediate support ahead of an important horizontal support near 1.3380-75 region.