USD/CAD off lows, still in red below mid-1.3300s

Having posted a session low near 1.3320 region, the USD/CAD pair managed to bounce off few pips but continued trading with mild bearish bias below mid-1.3300s. 

A major setback to the US President Donald Trump's major election campaign promise to repeal Obamacare prompted a fresh wave of selling pressure around the greenback. In fact, the key US Dollar Index fell to its lowest level in more than four months and dragged the pair closer to the 1.3320-15 immediate horizontal support. 

Meanwhile, a bearish sentiment surrounding WTI crude oil prices, which derives demand for the commodity-linked currency - Loonie, extended some support and collaborated towards limiting further downslide. 

However, the failure to push through an important legislation renewed concerns over Trump’s ability to deliver on significant pro-growth economic policies and failed to assist the pair to built on the tepid recovery bounce.

Later during the NY session, Chicago Fed President Charles Evans is due to speak bout the current economic conditions and monetary policy. His comments would be looked upon for fresh impetus in absence of any major economic releases.

Technical levels to watch

A follow through weakness below 1.3320-15 area, the pair is likely to head towards testing 100-day SMA support near 1.3295 region before aiming back towards multi-week lows support near 1.3265 level (Tuesday's low).

On the upside, sustained recovery above 1.3360-65 immediate resistance is likely to get extended towards the 1.3400 handle, above which a fresh bout of short-covering has the potential to lift the pair towards mid-1.3400s en-route 1.3475 resistance area.