USD/CAD bulls trying to regain control, comfortable above 1.25 handle

   •  Dip-buying helps regain positive traction. 
   •  Traders shrug off subdued USD demand. 
   •  Bullish oil prices fail to hinder the up-move.

The USD/CAD pair caught some fresh bids on Wednesday and recovered part of previous session's sharp retracement slide from near 4-week tops. 

The dominant risk aversion trade abated during the NY trading session on Tuesday and prompted US Dollar bulls to take some profits off the table, especially after the pair's latest upsurge of over 300-pips since last Friday. 

The pair, however, managed to find some dip-buying interest below the key 1.2500 psychological mark and moved higher, despite a mildly weaker USD and subdued action surrounding the US Treasury bond yields.

Even a goodish rebound in crude oil prices, which tends to underpin demand for the commodity-linked currency - Loonie, did little to stall the pair's up-move back to the 1.2520-25 region. 

Currently flirting with daily tops, the price-action now seems to point to a near-term bullish setup. Hence, a move back above 1.2540 supply zone, supported by technical factors, now looks a distinct possibility.

Technical levels to watch

A clear breakthrough 1.2540 immediate resistance now seems to pave the way for an extension of the pair's bullish trajectory towards testing 100-day SMA barrier near the 1.2600 handle. 

On the flip side, the 1.2500-1.2490 region now seems to have emerged as immediate support, which if broken might accelerate the corrective slide towards 1.2435 horizontal support en-route the 1.2400 handle.