USD/CAD jumps back above 1.3400 handle ahead of data

Having posted a session low near 1.3385 region, the USD/CAD pair has managed to recover its lost ground and moved back to the 1.3400 handle. 

The pair's strong up-move since the beginning of last week, from the vicinity of 1.3100 handle, now seems to face a roadblock and has repeatedly failed to sustain / build on to its momentum above 1.3400 handle amid bullish consolidative price-action around the US Dollar.

However, a weaker trading sentiment surrounding WTI crude oil, which tends to dent demand for the commodity-linked currencies - Loonies, has been lending some support and collaborated towards limiting any sharp near-term corrective slide for the major.

Despite of the sluggish move in the past couple of trading sessions, the pair remains within striking distance of two-month highs near 1.3435-40 region touched on Friday. 

Tuesday’s economic docket, featuring the release of trade balance data from the US and Canada would be looked upon for short-term trading opportunities. However, the broader trend would remain dependent on the keenly watched NFP data, scheduled for release on Friday.

Technical levels to watch

Immediate resistance is pegged around 1.3425-30 region, above which the upward trajectory is likely to get extended towards 1.3460 area, en-route the key 1.3500 psychological mark.

On the downside, 1.3380-75 region now seems to have emerged as immediate support, which if broken decisively might accelerate the corrective slide towards 1.3315 horizontal support before the pair eventually drops back to 100-day SMA support near 1.3285-80 region.