FXStreet (Mumbai) - The US dollar breathed a sigh of relief and rebounded sharply against its Canadian peer in early Europe, driving USD/CAD back above 1.42 handle. USD/CAD: Oil back in the red Currently, the USD/CAD pair rises 0.59% higher at fresh session highs of 1.4202, having found renewed bids just ahead of 1.41 handle. The USD/CAD pair brought an end to its three-days of excessive losses and jumped sharply higher over the last hours as the Canadian dollar suffered severe setback after the black gold resumed its broader downtrend. At the moment, both crude benchmarks are in the red, with the US oil (WTI) down -1.23% at $ 31.80, while the Brent drops -1.42% to 32.40 levels. Oil prices halted their almost 9% rebound seen last week and drifted lower today oversupply worries return to markets. Last week, the loonie regained lost momentum and rose to fresh weekly highs near 1.41 barrier, after the Bank of Canada (BOC) left its cash rate unchanged at 0.50%, squashing wide expectations of a 25bps rate cut in wake of the recent oil rout. Meanwhile, the sentiment on the oil markets will continue to dictate further CAD moves in the day ahead. USD/CAD Technical Levels To the upside, the next resistances are seen near 1.4247/53 (1h 50-SMA/ 20-DMA) and 1.4300 (round number). To the downside, immediate support might be located at 1.4150/43 (psychological barrier/ daily pivot) and below that 1.4111 (Jan 22 Low). For more information, read our latest forex news.