USD/CAD consolidating after previous session’s sharp fall

The USD/CAD pair was seen consolidating previous session's sharp slide to one week low and seesawed between tepid gains / minor losses, above the 1.3300 handle.

Rising crude oil prices, with WTI crude oil hitting 5-week tops beyond $53.00/barrel mark benefitted the commodity-linked currency - Loonie and weighed heavily on the major in the previous session. With oil entering a consolidative phase, it has failed to provide any fresh impetus to the major on Tuesday.

On the other hand, a subdued greenback price-action, with the key US Dollar Index remaining below the 101.00 handle, further collaborated to the pair's range-bound price action through Asian session on Tuesday.

Today's US economic docket features the only release of JOLTS openings data and hence, oil price-dynamics would continue to act as an exclusive driver of the pair's movement. Meanwhile, a scheduled speech by the Minneapolis Fed President Neel Kashkari might also be looked upon to grab some short-term trading opportunities.

Technical levels to watch

Weakness below the 1.3300 handle is likely to find support near 1.3275-85 region, comprising of 50-day and 100-day SMAs, which if broken would turn the pair vulnerable to head back towards the very important 200-day SMA support near 1.3210 region.

On the upside, any recovery attempts might now confront immediate resistance near 1.3340-45 region, above which the momentum is likely to get extended towards 1.3375-80 horizontal hurdle ahead of the 1.3400 handle.