USD/CAD turns negative, just holding above 50-DMA around 1.2900 level

The USD/CAD pair erased its early recovery to 1.2983 and turned negative to currently trade around 1.2915, slightly off session low level of 1.2908.

With a high degree of correlation with crude oil prices, the Canadian Dollar (CAD) gained traction as oil seems to make a fresh attempt to conquer the much talked about $50.00/barrel psychological mark. 

Moreover, investors also seem to trim their bullish USD bets ahead of the speech by the Fed Chair Janet Yellen, which might turn-up dovish than previous appearances and thus might totally eliminate the possibilities of any Fed rate-hike in June/July. 

Earlier today, the USD/CAD pair attempted a tepid recovery after nearly 200-pips of NFP led sell-off on Friday. The recovery attempts, however, got sold into and the pair has now dropped close to test 50-day SMA support, which if broken seems to open room for further near-term depreciating move for the pair.

Technical levels to watch

A follow through selling pressure below 50-day SMA support near 1.2900 handle, the pair seems to immediately slide towards 1.2837 (May 17 low) ahead of testing 5-week lows support near 1.2772 (May 12 low).

On the flip side, rebound from 50-day SMA support might continue to confront immediate resistance near 20-day SMA near 1.3000 psychological mark. A decisive strength above this important psychological mark resistance might negate the bearish outlook and set the stage for extension of the pair's near-term recovery towards 1.3100 handle resistance.