USD/CAD trims gains as oil recovers lost ground

The USD/CAD pair seems to have lost its upside momentum and has now tipped back below 1.3300 handle, reversing around 30 pips from session peak. 

Currently trading around 1.3290 region, a recovery in crude oil prices, with WTI crude oil moving back above $51.00/barrel mark, is seen benefiting the commodity-linked currency - Loonie, and exerting some selling pressure around the major. The pair has now reversed majority of its daily gains to 8-day highs, touched in the aftermath of hawkish Fed decision that triggered a sharp up-surge on Wednesday from the vicinty of 200-day SMA important support. 

Traders on Thursday will confront the release of Canadian Manufacturing Sales data, accompanied by CPI, Philly Fed Manufacturing Index and weekly jobless claims data from the US, which would be looked upon for fresh impetus during early NA session. Meanwhile, oil market dynamics would continue to contribute towards deriving the pair's movement on Thursday.

Technical levels to watch

Immediate downside support is pegged at 1.3275 level below which the pair is likely to immediately slide to 1.3250 before testing an important horizontal support near 1.3235 region. On the upside, momentum above session peak resistance near 1.3325 region is likely to face resistance at 50-day SMA near 1.3335-40 region, which if cleared has the potential to lift the pair back towards 1.3400 round figure mark.