USD/CAD headed back to session low

The USD/CAD pair's attempted recovery move ran through fresh offers near 1.3500 psychological mark and is now heading back towards the lower end of daily range.

Currently trading around 1.3465-70 band, the pair extended its corrective slide for the third consecutive session, primarily led by a broad based greenback retracement. In fact, the overall US Dollar Index extended its profit-taking slide and was seen moving back towards two-week low touched during early Asian session on Friday. 

Meanwhile, a mild weakness surrounding oil markets, with WTI crude oil sliding back below $54.00 barrel mark to currently trade with a minor cut of around 0.10%, failed to provide any respite for bulls and the pair maintained bearish bias near weekly low. 

Next in focus would be US economic docket, featuring the only relevant release of Chicago PMI print for December but would be looked upon for short-term trading impetus. 

Technical levels to watch

A follow through selling pressure below 10-day SMA support near 1.3460 (session low) is likely to attract a follow through selling pressure and continue dragging the pair towards 1.3425-20 intermediate support, en-route 1.3400 round figure mark. On the upside, 1.3500 mark now becomes immediate resistance above which a bout of short-covering seems to lift the pair towards 1.3535 horizontal resistance before making a fresh attempt towards conquering 1.3600 handle.