USD/CAD keeps the red for fourth consecutive session

The USD/CAD pair traded with bearish bias for the fourth consecutive session and prolonged last Friday's reversal move from two-week highs near mid-1.3500s.

The pair on Wednesday drifted into negative territory and dropped to nearly two-week lows near 1.3430 region. However, a modest up-tick in the US treasury bond yields was seen lending some support to the US Dollar's recovery move from 7-month lows and contributed towards limiting further losses, at least for the time being.

Meanwhile, a mildly weaker sentiment around oil markets, with WTI crude oil giving up early gains and now flirting with session lows below $48.00 handle, further dented demand for the commodity-linked currency - Loonie, and helped the pair to bounce off few pips from session lows. 

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It, however, remains to be seen if the pair is able to attract any buying interest at lower levels or remains vulnerable to extend its near-term corrective slide amid cautious sentiment ahead of former FBI Director James Comey's testimony on Thursday.

Today's economic docket lacks any fundamental drivers and hence, the pair remains at the mercy of broader market sentiment surrounding the greenback and oil price-dynamics. 

Technical levels to watch

On a sustained break below 1.3430 level, the pair is likely to aim towards the 1.3400 handle before eventually breaking through over one-month lows support near 1.3385 area towards testing its next major support near 1.3325 level.

On the upside, sustained recovery move above 1.3460 level (session tops) could get extended beyond the key 1.35 psychological mark towards 1.3515 level en-route a major hurdle near 1.3540-50 region.