USD/CAD trying to stabilize above 1.21 handle

The USD/CAD pair caught some fresh bids on Tuesday and recovered part of previous session's retracement back closer to over 25-month lows.

Currently holding with minor gains above the 1.2100 handle, the pair was seen benefitting from a modest pull-back in crude oil prices, which tends to dampen demand for the commodity-linked currency - Loonie. 

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The pair's minor uptick, however, lacked strong conviction amid a subdued US Dollar price action. However, continuous unwinding of safe-haven bets, amid receding worries over N. Korea and Hurricane Irma, should support a follow through uptick in the US Treasury bond yields and underpinned the greenback demand. 

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Later during the NA session, the release of JOLTS Job Openings data and API report on crude oil inventories would now be looked upon for some short-term trading impetus.

Technical levels to watch

Immediate resistance remains near 1.2155-60 area, above which a bout of short-covering could lift the pair back towards the 1.2200 handle ahead of 1.2225-30 resistance area.

On the flip side, sustained weakness back below the 1.2100 handle would turn the pair vulnerable to break below multi-month lows support near the 1.2060 region and head towards testing the key 1.20 psychological mark.