USD/CAD drops to fresh session low near 1.3430 level

Having stalled early tepid recovery move at the key 1.3500 psychological mark, the USD/CAD pair ran through some fresh offers and is now probing session lows near 1.3430 region. 

A fresh wave of greenback selling pressure, primarily led by the outcome of French Presidential election, seems to have negated renewed optimism over the US President Donald Trump's proposed 'massive tax cut' plans. 

Meanwhile, surging US treasury bond yields, with 10-yr benchmark yield moving back above 2.30%, did little to provide any immediate respite for the US Dollar and halt the pair's ongoing slide. Adding to this, recovery in crude oil, with WTI crude oil rebounding back above the $50.00/barrel mark, further boosted demand for the commodity-linked currency - Loonie and collaborated to the pair's rejection move from an important psychological mark. 

In absence of any major market moving economic releases on Monday, oil price-dynamics might continue to influence trading sentiment surrounding the major. 

Technical levels to watch

A follow through retracement below the 1.3400 handle is likely to find support near 1.3380 level, which if broken is likely to accelerate the slide back towards 50-day SMA support near 1.3330-25 region.

On the upside, 1.3465-70 area now seems to act as immediate hurdle, while the 1.35 handle remains an immediate important hurdle to clear. On a sustained break through the said handle might now trigger a short-covering rally towards 1.3575-80 resistance, with some intermediate hurdle near 1.3530-35 zone.