USD/CAD flirting with lows near 1.3400 handle

The USD/CAD pair ran through fresh offers near 1.3450 region and has now moved on the brink of breaking below 1.3400 handle.

Rallying oil prices, with WTI crude oil consolidating gains above $54.00/barrel mark, is lending support to the commodity-linked currency - Loonie and exerting selling pressure around the major. 

Meanwhile, growing expectations of faster US economic growth and further Fed rate-hike actions in 2017 might continue to underpin the US Dollar and limit further immediate downslide.

Later during NA session, the US ISM manufacturing PMI might influence investors' expectations and provide fresh impetus. In the meantime, oil price-dynamics is likely to remain a key determinant of the pair's movement on Tuesday. 

Technical levels to watch

A follow through selling pressure below 1.3400 handle is likely to accelerate the slide towards 1.3365 horizontal support below which the pair is likely to head towards 1.3335 support area. On the upside, recovery back above 1.3435 immediate resistance might now lift the pair beyond session peak resistance near 1.3450, towards testing 10-day SMA resistance near 1.3470 region ahead of 1.3500 psychological mark resistance.