USD/CAD flirting with daily lows, bears await a sustained break below 1.3300 mark

   •  The USD fails to capitalize on the risk-on mood-led upsurge in the US bond yields.
   •  The ongoing bullish run in oil prices underpin Loonie and add to the selling bias.
   •  Traders now eye US ADP report and ISM non-manufacturing PMI for fresh impetus.

The USD/CAD pair met with some fresh supply on Wednesday and has now moved within striking distance of over one-week lows set earlier this week.

After yesterday's attempted recovery move and a subsequent pullback from an intraday high level of 1.3374, a combination of negative forces kept exerting some downward pressure on Wednesday and contributed to the pair's bearish tone for the third day in the previous four.

Despite a strong upsurge in the US Treasury bond yields, amid a fresh wave of global risk aversion trade triggered by the latest optimism over the US-China trade talks, the US Dollar weakened across the board and was seen as one of the key factors prompting some fresh selling around the major.

This coupled with the ongoing bullish run in crude oil prices, hitting fresh multi-month tops and fast approaching the $63.00/barrel mark, provided an additional boost to the commodity-linked currency - Loonie and further collaborated to the pair's weakness through the early European session.

It would now be interesting to see if the pair continues to show some resilience below the 1.3300 handle or the ongoing slide marks the resumption of the recent downtrend as the focus now shifts to the US economic docket - featuring the release of ADP report and ISM non-manufacturing PMI.

The key focus, however, will be on Friday's closely watched US non-farm payrolls, which coupled with the Canadian monthly jobs report might help investors determine the pair's next leg of a directional move. 

Technical levels to watch

On a sustained fall below the 1.3300 mark, the pair is likely to accelerate the slide towards mid-1.3200s before eventually aiming to challenge the very important 200-day SMA support near the 1.3200-1.3190 region. On the flip side, the 1.3340-50 region now seems to act as an immediate resistance, above which the recovery could further get extended towards the 1.3380 supply zone en-route the 1.3400 round figure mark.