USD/CAD consolidating in a narrow range just above 1.35 handle

The USD/CAD pair was seen consolidating previous session's strong up-surge from two-week lows and oscillated within a narrow trading band just above the key 1.3500 psychological mark.

Following yesterday's sharp slump, led by the official EIA data that showed a surprise build in the US crude oil inventories, a modest rebound in oil prices extended some support to the commodity-linked currency - Loonie, and kept a lid on the pair's up-move. 

Moreover, a subdued US Dollar price-action has also failed to provide any fresh bullish impetus and assist the pair to build on overnight strong gains to weekly tops. 

Currently placed at the lower end of daily trading range, investors focus on Thursday would remain on the key testimony by former FBI director Comey, which would help determine the next leg of directional move for the major.

In the meantime, broader market sentiment surrounding the buck and oil price-dynamics would remain key determinants of the pair's movement through European trading session.

Later during the NA session, second-tier economic data - the US weekly jobless claims data, along with Canadian housing starts and NHPI print, might provide some impetus for short-term traders. Also in focus would be the half-yearly release of BOC's Financial System Review. 

Technical levels to watch

Retracement back below the 1.35 handle now seems to find support near 1.3480 level, which if broken might drag the pair back towards mid-1.3400s en-route 1.3425 strong horizontal support.

On the upside, momentum above 1.3525 level seems to lift the pair back towards two-week highs resistance near 1.3545-50 area before the pair eventually darts towards reclaiming the 1.3600 handle.