USD/CAD refreshes session low as oil recovers to $49.00 mark

Having once again failed to sustain its up-move beyond the key 1.35 psychological mark, the USD/CAD pair ran through some fresh offers and has now dropped to session low near 1.3480 level.

The pair's latest leg of slide in the past hour of so could be attributed to a follow through recovery in oil prices, with WTI crude oil moving moved back above $49.00/barrel mark and lending support to the commodity-linked currency - Loonie.

The pair drifted lower despite of a modest pick-up in the greenback demand. In fact, the key US Dollar Index has now recovered above the 97.00 handle, in wake of a sharp rebound in the US treasury bond yields, but did little to stall the pair's slide during early European session.

With oil price-dynamics acting as an exclusive driver of the pair's downslide, traders now look forward to today's release of ADP report, weekly jobless claims and ISM manufacturing PMI from the US, and Canadian manufacturing PMI for some fresh impetus later during the NA session.

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Technical levels to watch

A follow through retracement below 1.3470 level, the pair is likely to head back towards 1.3445-40 horizontal support before eventually dropping to the 1.3400 handle. On the flip side, sustained move above the 1.35 handle, leading to a subsequent break through 1.3525 level (yesterday's high), now seems to pave way for continuation of the pair's recovery move further towards 1.3570-75 intermediate resistance en-route the 1.3600 handle.