USD/CAD back in the red below 1.3350, despite weaker Oil

The USD/CAD pair is seen extending its retreat from 1.3380 levels reached last week, and now looks to test 1.33 handle amid persistent broad based US dollar weakness.

USD/CAD drops back to test 5-DMA at 1.3327

Currently, the USD/CAD pair skids -0.15% to 1.3327, having posted daily tops at 1.3353 in the opening trades. The major brought an end to its 2-day recovery mode and fell back in negative territory, largely on the back of a less hawkish-Fed induced ongoing USD weakness versus its main competitors. Meanwhile, the USD index meanders near more-than week troughs around 100 mark, tracking the negative performance seen in the treasury yields.

The spot keeps losses also as the Swiss franc remains well bid amid risk-off markets, ignoring oil-price weakness. Oil remains on the back foot as the latest Bakers and Hughes oilfields services report showed that the US oil rig count rose to 18-month highs.

Attention now turns towards the fundamentals, with the Canadian wholesales data due on the cards alongside a speech from the FOMC member Evans in the NA session.

USD/CAD Technical Levels   

To the upside, the next resistances are seen near 1.3388 (Jan 20 high) and 1.3458/63 (Jan 4 & 3 high) and from there to 1.3500 (zero figure). To the downside, immediate support might be located at 1.3302/00/ (Mar 17 low/ zero figure) and below that at 1.3274/70 (Mar 16 low/ 100-DMA) and at 1.3250 (psychological levels).