USD/CAD slides farther below 1.35 mark, hits fresh one-month lows

The greenback remained on the back-foot against its Canadian counterpart, with the USD/CAD pair sliding further below the key 1.35 psychological mark to fresh one-month lows.

Currently trading around 1.3480 level, the pair remained under persistent selling pressure and extended its reversal move from 14-month highs touched on May 5th. The latest Trump controversy, asking then-FBI Director James Comey to stop an investigation of former National Security adviser Mike Flynn, raised doubts over his ability to deliver on pro-growth economic policies and has been weighing on the US Dollar.

Adding to this, the recent dismal US economic data has also dampened expectations for a faster Fed rate-tightening cycle in 2017. Hence, the ongoing slide in the US treasury bond yields, which undermines the greenback demand, further collaborated to the pair's slide to its lowest level since April 24.

Meanwhile, a modest correction in oil prices, with WTI crude oil dipping back below $51.00/barrel mark, has failed to provide any additional boost to the commodity-linked currency - Loonie, and seems to be limiting further downfall, at least for the time being.

Later during the NA session, the release of Canadian Wholesale Sales data, followed by the US economic docket and speech by Minneapolis Fed President Neel Kashkari would now be looked upon for some fresh impetus.

Technical levels to watch

A follow through selling pressure below 1.3470 horizontal support has the potential to continue dragging the pair further towards its next support near 1.3440-35 area en-route the 1.3400 handle. On the flip side, any recovery attempts back above the 1.35 handle now seems to confront strong resistance near 1.3530-35 region, above which a bout of short-covering could lift the pair towards 1.3575-80 hurdle ahead of the 1.3600 handle.