USD/CAD consolidating after Friday’s sharp reversal, around mid-1.3600s

The USD/CAD pair reversed all of its early tepid recovery gains and is now all set to extend Friday's sharp reversal move from fresh 14-month tops.

Friday's retracement from the vicinity of the 1.3800 handle was led by a swift recovery in crude oil prices and a slight disappointment from decelerating earnings growth data from the keenly watched US monthly jobs report, which prompted investors to take some profits off the table with the pair slumping nearly 150-pips from the highest level since Feb. 2016.

A follow through up-move in oil prices, with WTI crude oil adding nearly 2.0% and inching back closer to the $47.00/barrel mark, benefitted the commodity-linked currency - Loonie, and has led to a mildly softer tone surrounding the major.

Against the backdrop of growing bets for an eventual Fed rate-hike action in June, a modest up-tick in the US treasury bond yields underpinned the US Dollar demand and seems to collaborate towards limiting further losses, at least for the time being. 

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Technical levels to watch

Immediate support is pegged near 1.3625 level, below which the corrective slide could get extended towards 1.3575-70 intermediate support en-route 1.3530-25 strong horizontal support. Meanwhile on the upside, momentum back above 1.3675 level (session tops) now seems to confront resistance near the 1.3700 handle, which if cleared could lift the pair back towards its major hurdle near mid-1.3700s.