USD/CAD digesting Friday’s strong gains

The USD/CAD pair was seen digesting Friday's strong gains and traded in a 30-pips range amid prevalent risk-off sentiment. 

Currently trading around 1.3170, the pair on Friday registered strong gains and jumped back above the very important 200-day SMA following the release of disappointing Canadian CPI and monthly retail sales data. 

Furthermore, a sharp slide in crude oil prices also added on to the offered tone around the commodity-linked currency, loonie, and provided an additional boost to the pair on Friday.

On Monday, cautious investor sentiment is seen extending supporting the US Dollar, while rebound in oil prices capped further up-move and confined the pair within a narrow trading range. 

On Monday, the release of new home sales data from the US might provide some fresh impetus but broader sentiment would continue to be driven by price-action surrounding oil prices. 

Technical levels to watch

Immediate upside resistance is pegged at 1.3200 round figure mark above which the pair is likely to aim towards retesting monthly high resistance near 1.3245-50 region before heading towards its next major resistance near 1.3285-90 region. Meanwhile on the downside, weakness below session low support near 1.3150 now seems to find support at 1.3130 horizontal zone, which if broken could drag the pair back towards 1.3100 handle.