USD/CAD struggling to extend momentum above 1.3400 handle

The USD/CAD pair oscillated within a narrow trading band and is now trading with mild negative bias around 1.3400 handle.

The pair has failed to gain any impetus amid mixed US Dollar performance and was seen consolidating its recent strong gains to multi-month highs. Meanwhile, a recovery in crude oil prices is benefitting the commodity-linked currency - Loonie and has restricted the pair just below last week's multi-month high. 

Traders now await for the monthly release of Canadian GDP print for August ahead of ISM manufacturing PMI from the US. However, Wednesday's FOMC decision and US monthly jobs report (NFP) on Friday would be the next big fundament triggers that would help investors determine the next leg of directional move for the major.

Technical levels to watch

On the upside, 1.3425 level remains immediate resistance to watch for above which the pair is likely to aim immediately towards 1.3450 intermediate resistance before darting towards 1.3500 psychological mark. On the flip side, sustained weakness below 1.3400 handle, leading to a subsequent drop below 1.3375-70 (yesterday's low), is likely to attract fresh selling pressure and drag the pair immediately towards 1.3340-35 support en-route its next major support near 1.3300-1.3290 region.