USD/CAD hammered below 1.3200 handle

Having faced rejection near 1.3300 handle, the USD/CAD pair reversed nearly 130-pips from session peak and tumbled below 1.3200 handle. 

Currently trading around 1.3170 region, the pair came under some intense selling pressure during early NA session after on news report (via Bloomberg) that Trump is said to plan orders approving Keystone, Dakota Pipelines. The Keystone XL pipeline will bring Canadian oil from Alberta to the Gulf Coast and remove a key bottleneck out of Canada, which has been driving down margins for oil companies. The decision would also attract more investment in the Canadian oil sector and provided a sharp boost to the Canadian Dollar. 

Meanwhile, upbeat sentiment surrounding oil markets, with WTI crude oil trading with gains of 0.85%, was also seen supporting demand for the commodity-linked currency - Loonie. This coupled with stalling US Dollar recovery move further collaborated to the pair's sharp downslide in the past hour or so. 

Technical levels to watch

A follow through selling pressure might continue dragging the pair towards 1.3150 support area below which the pair seems vulnerable to drop back towards 200-day SMA support near 1.3100 round figure mark. On the upside, recovery back above 1.3235 level now seems to confront strong resistance at 100-day SMA near 1.3275-80 region above which the pair is likely to make a fresh attempt towards reclaiming 1.3300 handle.