USD/CAD off session lows, still weaker below 1.3500 mark

The USD/CAD pair has managed to bounce off nearly 35-40-pips from session low but remained well below 1.3500 psychological mark.

Currently trading around 1.3475 region, a broad based US Dollar retracement triggered the initial leg of downslide to session through level of 1.3435. Adding to this, buoyant sentiment surrounding crude oil prices was also seen benefiting the commodity-linked currency - Loonie. 

The pair, however, found some renewed buying interest at lower levels as increasing prospects of an imminent Fed rate-hike action at the central bank's December meeting continues to underpin the greenback and limited any further downslide for the time being. 

In absence of any major market moving releases, USD price dynamics and the prevalent sentiment around commodities would be key determinants of the pair's move on Monday ahead of this week's key event risks - Canadian monthly retail sales data on Tuesday and Wednesday's FOMC meeting minutes, which would help investors to determine the next leg of directional move for the major.

Technical levels to watch

Immediate upside resistance remains near 1.3500 psychological mark above which the pair seems to aim back towards 1.3555-60 horizontal resistance before attempting a move towards 1.3600 handle. On the downside, 1.3450-45 area remains immediate support to defend, which if broken is likely to drag the pair back towards 1.3400 round figure mark.