After an initial up-tick to 1.3260 region, the USD/CAD pair ran through fresh offers and has now moved on the verge of breaking below the 1.3200 handle.
A fresh wave of greenback selling pressure, with the key US Dollar Index flirting with yearly lows near mid-96.00s, has been one of the key factors weighing on the major.
Adding to this, receding bearish pressure around WTI crude oil prices, especially after Russian Deputy Oil Minister Molodtsov's comments that the Russian oil output reduced by more than 300k barrels per day, was also seen lending support to the commodity-linked currency - Loonie, and collaborated to the pair's slide during early NA session.
Looking at the broader picture, any recovery attempts have been facing fresh supply at the very important 200-day SMA. Hence, a sustained weakness below the 1.3200 mark would pave way for continuation of the pair's near-term downward trajectory from yearly tops near the 1.3800 handle touched in early May.
Next on tap would be the release of US Consumer Confidence Index for June, which would be looked upon for some short-term trading impetus ahead of Philadelphia Fed President Patrick Harker and the Fed Chair Janet Yellen's speech later during the day.
Technical levels to watch
Weakness below the 1.3200 handle is likely to get extended towards 1.3165 level (June 14 low), below which the pair is likely to head towards testing an intermediate support near 1.3130 region ahead of the 1.3100 handle.
On the upside, any recovery move back above 1.3230-35 region might continue to confront some fresh supply near 1.3260-70 region, which if cleared might trigger a short-covering bounce towards the 1.3300 handle en-route 1.3330-35 region (200-day SMA).
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