USD/CAD off lows, still deep in the red near mid-1.4100s

• USD/CAD corrects from multi-week tops and falls over 100 pips amid a modest USD pullback.
• Weaker sentiment around oil prices undermined the loonie and helped limit deeper losses.

The USD/CAD pair dropped to fresh session lows, around the 1.4130-25 region in the last hour, albeit quickly recovered few pips thereafter.

The pair failed to capitalize on its early uptick to the 1.4235 region, rather came under some aggressive intraday selling pressure and snapped two consecutive days of winning streak amid a modest US dollar pullback.

The US Senate passed another $484 billion economic support bill and boosted investors' confidence. This was evident from a goodish bounce in the equity markets and weighed on the greenback's perceived safe-haven status.

Meanwhile, the sentiment around the oil market remains fragile amid concerns over the shortage of storage space and a global supply glut. This eventually undermined the commodity-linked currency – the loonie – and helped limit deeper losses.

This comes amid persistent worries over the economic fallout from the coronavirus pandemic, which should continue to benefit the USD's status as the global reserve currency and attract some dip-buying amid absent relevant market-moving data.

Technical levels to watch