USD/CAD sustaining weakness below 1.3500 mark

The USD/CAD pair was seen building on to its rejection move from 1.3600 handle and is now sustaining weakness below 1.3500 psychological mark.

Currently trading around 1.3480 level, off around 20-pips from session low, a sharp US Dollar retracement to 2-week lows, primarily led by of a knee-jerk spike in the EUR/USD major, kept the pair in bearish territory for the third consecutive session. Adding to this, buoyant sentiment surrounding oil market, with WTI crude oil hovering around $54.00/barrel mark, is further lending support to the commodity-linked currency - Loonie and restricting the pair's recovery.

Looking at the broader picture, despite of the recent slide, the pair on Friday has managed to hold 10-day SMA support and hence, the ongoing slide could be categorized as a corrective move following post-US election sharp up-surge of over 500-pips. 

On the last trading day of 2016, market participants would look forward to the release of Chicago PMI, later during NA session, in order to grab some short-term trading opportunities. 

Technical levels to watch

On the downside, 10-day SMA near 1.3460 region remains immediate support to defend below which the pair is likely to head towards its next support near 1.3415 area ahead of 1.3400 round figure mark. On the upside, recovery momentum above 1.3500 handle now seems to confront resistance near 1.3535 level above which the pair is likely make a fresh attempt towards reclaiming 1.3600 handle with 1.3575 providing some intermediate resistance.