USD/CAD struggles near multi-month lows, just above mid-1.3100s

The USD/CAD continued with its struggle to register any meaningful recovery and remained well within the striking distance of multi-month lows, just above mid-1.3100s.

Despite the ongoing US Dollar recovery, the pair failed to attract any buying interest and remained on the defensive for the third consecutive session - also marking its sixth day of negative move in the previous seven.

It is worth reporting that the greenback on Tuesday staged a goodish rebound from multi-month lows in reaction to not so dovish comments by St Louis Fed President James Bullard and the Fed Chair Jerome Powell.

A strong follow-through rally in Crude Oil prices continued underpinning demand for the commodity-linked currency - Loonie and turned out to be one of the key factors that kept exerting some downward pressure on the major.

Oil prices have been squeezing higher amid escalating tensions in the Middle East and got an additional boost after the latest API reported a fall in US crude inventories by 7.5 million barrels during the week ended June 21.

The Canadian Dollar was further supported by the overnight release of better-than-expected wholesale sales figures, with recorded a growth of 1.7% on a monthly basis in April as compared to 1.4% rise in the previous month.

Meanwhile, bearish traders are likely to wait for a sustained break through mid-1.3100s (multi-month lows) before positioning for any further near-term depreciating move ahead of Wednesday's US macro data.

The US economic docket features the important release of durable goods order data, which coupled with Oil price dynamics will be looked upon for some meaningful trading impetus later during the early North-American session.

Technical levels to watch