USD/CAD clings to strong gains near 200-DMA

Having posted a session high at 1.3176, the USD/CAD pair trimmed some of its strong gains and retraced marginally below the very important 200-day SMA.

Currently trading around 1.3160 region, bulls seem to take a breather as investors now await for ECB press conference that would provide fresh impetus for the US Dollar and eventually drive the USD/CAD major. 

The pair, however, has been able to maintain its strong bid tone after BOC's downward revision to its projection for growth and inflation in quarterly outlook report released following the monetary policy decision announcement on Wednesday. 

Moreover, softer tone surrounding oil prices, with WTI crude oil now dipping below $51.00/barrel mark, is also weighing on the commodity-linked currency - loonie and assisting the pair to extend Wednesday's recovery from the vicinity of 1.3000 psychological mark.

Today's US economic data - Philly Fed manufacturing index, weekly jobless claims and existing home sales data, would also be looked upon in order to grab short-term trading opportunities.

Technical levels to watch

On the upside, sustained move above 200-day SMA near 1.3165, leading to a subsequent break through weekly high resistance near 1.3185 region, seems to pave way for an immediate up-move beyond 1.3200 handle towards 1.3225-30 strong horizontal resistance. Meanwhile on the downside, weakness below 1.3130 is likely to be short-lived and is now likely to find strong buying interest around 1.3100 handle.