“¢ A subdued USD price action does little to provide any meaningful impetus.
“¢ Bullish oil prices underpin Loonie and keep a lid on any further up-move.
“¢ Today’s second-tier economic data seems unlikely to influence the price action.
The USD/CAD pair gained some positive traction at the start of a new trading week, albeit struggled to make it through the mid-1.3000s resistance zone.
Friday’s upbeat US economic data helped revive the US Dollar demand and was seen as one of the key factors behind the pair’s goodish rebound from closer to monthly lows, touched in the aftermath of softer US consumer inflation figures.
The up-move got an additional boost after a Bloomberg report indicated that US President Donald Trump wanted to proceed with tariffs on $200 billion worth of Chinese goods.
With investors awaiting the announcement of the said tariffs, expected this Monday, a combination of factors kept a lid on any follow-through up-move through the early European session.
The USD bulls held on the defensive, while the prevailing bullish sentiment around crude oil prices underpinned the commodity-linked Loonie and kept a lid on any meaningful up-move for the major.
The downside, however, remained cushioned amid now so positive expectations about the NAFTA deal, which was eventually seen as one of the key factors behind the pair’s subdued/range-bound price action.
Moving ahead, today’s relatively thin economic docket, featuring the release of Canadian Foreign Securities Purchases figures and Empire State Manufacturing Index from the US might help traders grab some short-term opportunities.
Technical levels to watch
On a sustained move beyond mid-1.3000s, the pair seems all set to aim towards reclaiming the 1.3100 handle before darting towards the 1.3160 supply zone. On the flip side, the key 1.30 psychological mark now seems to protect the immediate downside, which if broken might turn the pair vulnerable to slide back towards testing monthly lows, around the 1.2975 region.
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