USD/CAD consolidates in a range below 1.3400 mark

   •  The USD held on the defensive on the back of declining US bond yields.
   •  Bullish oil prices underpin Loonie and added to the pair’s weaker tone.
   •  Downside seems limited amid absent market moving economic releases. 

The USD/CAD pair lacked any firm directional bias and was seen oscillating in a narrow trading band, below the 1.3400 handle on the first day of a new trading week. 

A combination of forces failed to assist the pair to build on last week's goodish up-move to over one-week tops, rather prompted some long-unwinding trade during the Asian session on Monday. 

Friday's sluggish wage growth data-led decline in the US Treasury bond yields kept the US Dollar bulls on the defensive and was seen as one of the key factors keeping a lid on any subsequent up-move for the major.

This coupled with the ongoing bullish run in crude oil prices, further fueled by military action in Libya, further underpinned the commodity-linked currency Loonie and added to the pair’s mildly weaker tone. 

The Canadian Dollar, however, failed to capitalize on the positive factor, rather was weighed down by Friday's disappointing employment details and turned out to be the only factor limiting further downside. 

Hence, it would be prudent to wait for a sustained break through the daily trading range before traders start positioning for any meaningful intraday momentum amid absent relevant market moving economic releases.

Technical levels to watch

Bulls are likely to wait for a sustained move beyond the 1.3400 mark, above which the pair is likely to aim towards challenging the 1.3440-50 supply zone. On the flip side, any meaningful pullback is likely to find some support near mid-1.3300s, which if broken might extend the slide further towards 100-day SMA support near the 1.3320 region.