USD/CAD struggles near three-month lows, around mid-1.3000s

• A modest pickup in the USD demand failed to provide any respite.
• Bulls even shrugged off the ongoing slide in Crude Oil prices.
• The focus remains on Wednesday’s FOMC/BoC policy updates.

The USD/CAD pair struggled to register any meaningful recovery and remained depressed near three-month lows, around mid-1.3000s.
 
The pair extended its sideways consolidative action through the early European session on Tuesday and failed to gain any respite from the ongoing pullback in Crude Oil prices, which tend to undermine demand for the commodity-linked currency – Loonie.

Investors remain on the sidelines

Despite the recent optimism over a possible partial trade deal between the world's two largest economies, growing concerns about the slowing global economic growth were cited as headwind for the oil markets and led to some follow-through weakness on Tuesday.
 
Meanwhile, bulls seemed to have largely shrugged off a modest US Dollar uptick, rather preferred to remain on the sidelines ahead of Wednesday's key event risk – the outcome of a highly anticipated FOMC meeting and the latest BoC monetary policy update.
 
Moving ahead, Tuesday's US economic docket – featuring the release of the Conference Board's Consumer Confidence Index and pending home sales data – will be looked upon for some short-term trading impetus later during the early North-American session.

Technical levels to watch