USD/CAD pares NAFTA news-led losses, eyeing 1.36 mark on weaker oil prices

The USD/CAD pair reversed majority of the NAFTA news-led knee-jerk downward spike and is now eyeing to move back above the 1.3600 handle.

Earlier on Thursday, the pair came under intense selling pressure after the US President Donald Trump agreed not to terminate the NAFTA treaty at this time. Adding to this, disappointment from the US President Donald Trump's tax reforms further collaborated to the pair's sharp reversal from 14-month tops near mid-1.3600s.

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The pair, however, managed to recover rather swiftly amid weaker oil prices, with WTI crude oil is now trading with losses in excess of 1.25% and flirting with the $49.00/barrel mark. The prevalent bearish sentiment surrounding oil markets continued weighing on the commodity-linked currency - Loonie, and helped the pair to stage a goodish recovery from lows. 

Investors now look forward to the US macroeconomic releases, including - durable goods orders, weekly jobless claims and pending home sales data, for some fresh impetus during early NA session.

Technical levels to watch

A follow through recovery back above the 1.3600 handle might continue boosting the pair back towards multi-month highs resistance near mid-1.3600s before targeting to test 1.3700 round figure mark. Meanwhile, 1.3535-30 area now becomes immediate support to defend, which if broke is likely to drag the pair below the key 1.35 psychological mark towards testing its next support near 1.3455-50 horizontal zone.