USD/CAD plunges to two-week low near 1.3350

The USD/CAD pair traded with bearish bias for the sixth straight session and tumbled over 100-pips from session peak near 1.3460 region.

Currently trading around mid-1.3300s, testing two-week lows, possibilities of stops getting triggered on a decisive break below 1.3400 handle seems to be only factor collaborating to the pair's sharp slide during mid-European session. 

Even retreating crude oil prices, with WTI crude oil reversing majority of its daily gain, which tends to dent demand for the commodity-linked currency - Loonie, failed to provide any respite for bulls and the pair broke below 20-day SMA to its lowest level since Dec. 19.

Investors on Wednesday will remain focused on the release of minutes from the Fed's latest monetary policy meeting on Dec. 13-14 and would now be looked upon for fresh impetus for pair's near-term direction. 

Technical levels to watch

A follow through selling pressure below 1.3335 immediate support, leading to a subsequent break below 1.3315 support area, would turn the pair vulnerable to break below 1.3300 handle and head towards testing its next support near 1.3275-70 region. On the upside, 1.3365-70 area now becomes immediate hurdle above which a fresh bout of short-covering could boost the pair back towards an important support, now turned strong resistance, near 1.3400 handle.