USD/CAD recovers yesterday's pull-back from 3-week highs, back around 1.2375

The USD/CAD pair gained some positive traction on Wednesday and has now recovered previous session's slide from three-week tops.

On Tuesday, the pair failed to sustained early move beyond the 1.2400 handle and finally snapped seven consecutive days of winning streak. The ongoing bullish sentiment around oil markets, with WTI crude oil hitting a 26-month high, underpinned the commodity-linked currency - Loonie and was seen weighing on the major. 

The pair managed to catch some fresh bids on Wednesday amid persistent US Dollar buying interest, supported by Tuesday's hawkish comments from the Fed Chair Janet Yellen and renewed optimism over the US President Donald Trump's tax reform plan. 

The greenback strength, to some extent, seems to have been negated by continuous up-move in oil prices and seems to collaborate towards keeping a lid on the pair's up-move. 

Moving ahead, today's release of durable goods order and pending home sales data, followed by EIA crude oil inventories data from the US, would be looked upon for some fresh trading impetus. Also in focus would be a scheduled speech by the BOC Governor Stephen Polo, due later during NY trading session.

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Technical levels to watch

Immediate strong resistance remains near 1.2390-1.2400 area, which if cleared decisively should pave way for extension of the pair's up-move towards 50-day SMA hurdle near the 1.2460-65 region.

On the flip side, mid-1.2300 is likely to protect immediate downside, below which the pair is likely to accelerate the fall back towards the 1.2300 handle en-route 1.2260-50 strong horizontal support.