USD/CAD struggling to gain further traction beyond 100-DMA

The USD/CAD pair remained mildly higher for second consecutive day on Monday but remained within Friday's trading range.

Currently hovering 100-day SMA near 1.3250 region, a softer tone surrounding oil markets and broad based US Dollar strength helped the pair to extend recovery from three-week low touched on Friday. In fact, WTI crude oil is now trading below $54.00/barrel mark, with a cut of around 0.5%, and is seen weighing on the commodity-linked currency - Loonie.

Looking at the broader picture, the recovery has been tepid as Friday's upbeat Canadian economic data - labor market figures and Ivey PMI print, were seen lending support to the Canadian Dollar and negating bullish sentiment surrounding the greenback in wake of Friday's solid NFP report. 

Later during NY trading session, BOC's Business Outlook Survey followed by speeches from two regional Fed Presidents would now be looked upon for fresh impetus. Also, the broader sentiment surrounding oil market would also contribute towards determining the pair's movement on Monday. 

Technical levels to watch

Immediate upside resistance is pegged near 1.3265-70 region above which the recovery is likely to get extended towards 1.3300 region. A follow through momentum might now confront resistance near 1.3330-35 region. ON the downside, weakness below 1.3225 immediate support should turn the pair vulnerable to break below 1.3200 handle and head towards testing 1.3175 support (Friday's low), en-route 1.3130 strong horizontal support.