USD/CAD slides to fresh session low as oil rises further

The USD/CAD pair ran through some fresh offers near 1.3425 region and has now retreated back below the 1.3400 handle.

Currently trading around 1.3380-75 region, testing session lows, the pair failed to build on Friday's sharp recovery move and turned lower for the third consecutive day. Friday's better-than-expected Canadian jobs report, coupled with dismal headline NFP print, continues to weigh on the major. 

Adding to this, a follow through strength around oil markets, with WTI crude oil building on the strength beyond the $52.00/barrel mark, further boosted demand for the commodity-linked currency - Loonie, and collaborated to the pair's retracement from session tops. 

Meanwhile, a modest US Dollar strength, against the backdrop of growing expectations for further Fed rate-hike actions in 2017 following Friday's hawkish comments by the New York Fed President William Dudley, might extent some immediate support and limit and further downslide. 

With an empty economic docket on Monday, market focus would remain glued to the Fed Chair Janet Yellen's scheduled speech for some fresh impetus during NY trading session.

Technical levels to watch

Immediate support is pegged near 1.3370 level, below which the pair is likely to accelerate the slide back towards 1.3345-40 area (Friday's low) ahead of 1.3320-15 support. 

On the upside, recovery back above the 1.3400 handle, leading to a subsequent momentum above 1.3425 region (session high), is likely to confront resistance near mid-1.3400s. On a sustained strength beyond 1.3450 hurdle, the pair seems all set to head towards reclaiming the key 1.35 psychological mark.