USD/CAD fails ahead of 1.35 handle, slides back closer to mid-1.3400s

The USD/CAD pair faced rejection just ahead of the key 1.35 psychological mark and eroded part of previous session's strong recovery gains from over one-month lows.

With investors seemed disappointed by major oil producers’ decision to extend output cut deal, tumbling oil prices helped the pair to rebound sharply from sub-1.3300 level, the lowest level since April 19 touched on Thursday. 

Today's retracement from higher levels could be attributed to a modest recovery, with WTI crude oil recovering back above $49.00/barrel mark and benefitting the commodity-linked currency - Loonie, 

The pair has now dropped back to closer to mid-1.3400s as focus now shifts to important US macro data - preliminary GDP print, Durable Goods Orders and revised UoM Consumer Sentiment Index, for some fresh impetus ahead of an extended weekend, with the US banks closed on Monday in observance of Memorial Day.

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Technical levels to watch

Immediate support is pegged near 1.3440-35 region, below which slide could get extended back towards the 1.34 handle before the pair eventually extended the near-term downward trajectory further towards its next major support near 1.3330-25 area.

On the upside, the key 1.35 psychological mark remains immediate hurdle, which if conquered could lift the pair towards 1.3535-40 strong horizontal resistance.