USD/CAD struggling below 100-DMA at 1.3020

Despite of the broadly strengthening US Dollar, the USD/CAD pair continues to struggle below 100-day SMA but has held on to 1.3000 psychological mark.

After Friday's sharp up-surge, the pair initially attempted to build on to its strength but failed to capitalize on the up-move and retraced from 100-day SMA resistance around 1.3085-1.3100 region. 

The relative outperformance of the Canadian Dollar could be attributed to a tepid bounce in crude oil prices back above $47.00 mark. However, given the global risk-off sentiment any further recovery in oil prices seems unlikely and hence, might restrict any immediate sharp downslide for the USD/CAD pair.

Going forward, developments surrounding the unexpected outcome of the crucial Brexit referendum might continue to drive investor sentiment surrounding dollar-denominated commodities - like oil, and eventually affect movement for commodity-related currencies - like the Canadian Dollar.

Technical levels to watch

From current levels, sustained weakness below 1.3000 psychological mark is likely to find immediate support around 50-day SMA, near 1.2935 region, below which the pair is likely to extend its slide immediately towards 1.2850 horizontal support. 

Alternatively, momentum above 100-day SMA resistance near 1.3085 region is likely to gain traction, assisting the pair further towards May highs resistance around 1.3170-75 area. A convincing strength above May highs resistance now seems to open room for extension of the pair's near-term upward trajectory.