USD/CAD turns lower amid recovery in oil prices

The USD/CAD pair ran through some fresh offers during early European session and retreated around 25-pips from session tops near 1.3260 region.

With markets looking past the US Commerce Department's statement, to impose duties on the softwood lumber exports from Canada, a fresh wave of US Dollar selling pressure dragged the pair to fresh session lows near 1.3235 region. 

The latest leg of fall over the past hour or so could also be attributed to a strong follow through recovery in crude oil prices, which was seen benefitting the commodity-linked currency - Loonie, and weighing on the major.

The pair, however, has managed to hold within previous session's trading range as investors remained on the sidelines ahead of speeches by Philadelphia Fed President Patrick Harker and the Fed Chair Janet Yellen, later during the day.

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Ahead of the Fedspeaks, the release of Conference Board's Consumer Confidence Index might provide some impetus and help grab some short-term trading opportunities.

Technical levels to watch

Immediate support remains near 1.3215-10 region, below which the pair is likely to accelerate the slide back towards monthly lows support near 1.3165 level (June 14 low) before eventually dropping to its next support near 1.3120-15 zone. 

On the upside, 1.3260-65 area now seems to have emerged as a immediate resistance, which if cleared decisively has the potential to lift the pair towards the 1.3300 handle en-route the very important 200-day SMA hurdle near 1.3335-40 region.