USD/CAD struggling to register any meaningful recover from two-year lows

Having retested 2017 lows near the 1.2415-10 region, the USD/CAD pair recovered a bit and is now trading with mild positive bias around mid-1.2400s. 

The pair on Wednesday sank below May 2016 lows support near 1.2460 region following the much awaited FOMC statement sounded less hawkish and pushed the US Dollar sharply lower. This coupled with a strong rally in crude oil prices, led by the EIA report that showed a larger-than-expected drawdown of 7.2 million barrels, provided an additional boost to the commodity-linked currency - Loonie and dragged the pair to over two-year lows.

With investors looking past the Fed decision, and oil prices entering a bullish consolidation phase, a modest greenback recovery helped stall the pair's downward trajectory and might have prompted traders to lighten some of their bearish bets. 

The recovery move, however, lacked any strong follow through momentum as traders now look forward to the US macro data for some fresh impetus. Today's US economic docket features the release of durable goods orders, goods trade balance data and initial weekly jobless claims, which would be looked upon to grab some short-term trading opportunities.

Technical levels to watch

A fresh leg of selling pressure might now turn the pair vulnerable to head towards testing the 1.2400 handle, which if broken would pave way for continuation of the depreciating move towards 1.2350-45 intermediate support en-route the 1.2300 round figure mark.

On the flip side, any meaningful recovery now seems to confront strong hurdle near the key 1.25 psychological mark, above which a fresh bout of short-covering could lift the pair beyond 1.2540 intermediate resistance towards its next important barrier near 1.2590-1.2600 region.