USD/CAD mildly weaker around 1.3330 level

After yesterday's sharp recovery move, the USD/CAD pair came under some renewed selling pressure on Friday but has managed to hold its above the 1.3300 handle. 

Currently trading around 1.3335-30 region, testing session lows, the pair traded with bearish bias despite of a mildly weaker sentiment surrounding WTI crude oil, which tends to dent demand for the commodity-linked currencies - like Loonie. Meanwhile, a consolidative greenback price-action has also failed to assist the pair to build on previous session's strong recovery bounce from the 1.3280-75 support area led by upbeat Q4 US GDP print. 

Looking at the broader picture, the pair has been oscillating within a broader trading range, between the 1.3400 handle and 100-day SMA, over the past couple of week. Hence, it would be prudent to wait for a decisive break through the trading range before confirming the pair's next leg of directional move. 

Investors now look forward to the monthly Canadian GDP print and the US economic docket for fresh impetus during early NA session. Also in focus would be speeches by couple of FOMC members - New York Fed President William Dudley and Minneapolis Fed President Neel Kashkari.

Technical levels to watch

Immediate downside support remain at 100-day SMA near 1.3300-1.3295 region and is closely followed by 1.3275-65 strong horizontal support. A decisive break below 1.3275-65 support is likely to drag the pair towards 50-day SMA support near 1.3240-35 region. On the upside, momentum above mid-1.3300s could get extended towards 1.3380 strong horizontal resistance before the pair makes a fresh attempt to conquer the 1.3400 handle.