USD/CAD bounces off lows, gains capped ahead of Trump healthcare vote

Having posted a session low near 1.3315 region, the USD/CAD pair regained traction reverse part of previous session's reversal move from weekly tops. 

A fresh leg of bearish slide in oil markets, with WTI crude oil reversing early gains and slipping back below $48.00/barrel mark, was seen weighing on the commodity-linked currency - Loonie, and helped the pair to maintain a mildly positive bias.

However, an unexpected rise in the US initial weekly jobless claims, coming-in at 258K for the week ended March 17 as compared to 240K expected and previous week's 243K (revised higher from 241K), failed to extend any additional support. 

Meanwhile, market participants remained concerned about Trump’s ability to gather enough support for his healthcare bill, which has kept the key US Dollar Index suppressed near multi-week lows around mid-99.00s and collaborated towards capping the pair below session high level of 1.3355 touched during mid-European session. 

US: House Republicans postponed 9 a.m. caucus meeting - RTRS

Next on tap would be the release of new home sales data from the US, while the spotlight remains on the key vote on Trump's American Health Care Act in the House of Representatives. 

Technical levels to watch

Bulls would be eyeing for a follow through bullish momentum beyond 1.3355-60 resistance, above which the pair is likely to dart back towards 1.3400-1.3410 resistance (yesterday's high) before eventually aiming towards 1.3475-80 resistance and the key 1.3500 psychological mark.

On the downside, sustained weakness below 1.3315 level (session low), leading to a subsequent drop below 100-day SMA support near 1.3300-1.3295 region, now seems to turn the pair vulnerable to break through 1.3265 level (yesterday's low) and head towards testing 50-day SMA support near 1.3220 region.