• USD/CAD retreats to 1.3630 from session highs at 1.3675.
• The pair holds mild daily gains as Warsh's nomination as Fed Chair has soothed investors.
• A sharp reversal in Oil prices is hurting the CAD on Monday.

The US Dollar holds minor gains on Monday after rallying nearly 1% on Friday against the Canadian Dollar. The pair, however, found sellers at 1.3675 earlier in the day before trimming some gains, and retreated to 1.3630 at the time of writing.

The Greenback remains buoyed by investors’ confidence that US President Trump’s pick for the Fed, Kevin Warsh, will guarantee the bank’s independence. Warsh has advocated for lower interest rates recently, but he held a rather hawkish stance during his time at the committee and is expected to have a cautious approach to inflation.

Beyond that, the sharp reversal in crude prices is adding negative pressure on the commodity-sensitive CAD. The price of the US benchmark WTI barrel has dropped back to levels below $62.00 and is more than $4 below last week’s highs, at $66.30.

Technical Analysis: Dollar recovery is losing strength 

The Greenbacks spside attempts have been capped below the 38.2% Fibonacci retracement of the late-January sell-off, right above 1.3660, and also below a previous support, now turned resistance, in the 1.3670 area (January 26 low).

Technical indicators show a softer momentum but remain within bullish territory. The 4-Hour Relative Strength Index (RSI) is at 55, highlighting a neutral-to-bullish tone. The Moving Average Convergence Divergence (MACD) is printing contracting green bars.

Bulls would need to confirm above the mentioned 1.3670 to set sail towards the January 27 high, at 1.3735, and the 61.8% Fibonacci retracement, a common target for corrections, at 1.3763. Immediate support is at the Intra-day low, near 1.3600. Further down, the 16-month low, at 1.3481, would come into play.