USD/CAD reverses tepid recovery gains, eyeing BOC for fresh impetus

The USD/CAD pair failed to build on tepid recovery move and refreshed session low during mid-European session.

Currently trading around 1.3315-20 band, spot ran through some fresh offers amid prevalent bullish sentiment surrounding oil market. In fact, WTI crude oil has now jumped to the highest level since early March and was seen boosting demand for the commodity-linked currency - Loonie.

On the other hand, a slightly softer tone surrounding the key US Dollar Index, despite of a modest recovery in the US treasury bond yields, further collaborated to the pair's retracement from session peak.

The downslide, however, seemed limited and the pair has managed to hold above the 1.3300 handle as investors await BOC monetary policy decision, and subsequent presser, due later during the NA session for fresh impetus amid lighter economic docket. 

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Technical levels to watch

Bears would be eyeing for a decisive break through 1.3300 mark, below which the pair now seems to break below 1.3285-80 confluence support (100-day and 50-day SMAs) and head towards the very important 200-day SMA support near the 1.3215 region.

On the flip side, 1.3340-50 area now seems to have emerged as immediate hurdle, which if cleared is likely to trigger a short-covering rally towards the 1.3400 handle, with some intermediate barrier near 1.3385 horizontal level.