USD/CAD bulls struggling to decisively break through 1.28 handle

   •  USD strength helps regain some positive traction.
   •  Lacks any follow through traction beyond 1.28 handle.

The USD/CAD pair traded with a mild positive bias on Monday but continued with its struggled to decisively break through the 1.2800 handle.

On Friday, the pair did attempt a move beyond the 1.2800 handle and spiked to fresh 2-week tops after the latest Canadian inflation figures for October matched consensus estimates. However, a strong rally in crude oil prices, which tends to benefit the commodity-linked currency - Loonie, failed to assist the pair to build on the momentum. 

With oil prices entering a consolidation phase, a goodish pickup in the US Dollar demand, primarily led by a sell-off in the EUR/USD major, helped the pair to gain some positive traction at the start of a new trading week. 

The up-move, however, seemed lacking conviction amid a sharp decline in the US Treasury bond yields and ongoing concerns over the passage of a long-awaited US tax cut legislation.

With an empty economic docket, the pair remains at the mercy of broader market sentiment surrounding the greenback and oil price dynamics.

Technical levels to watch

Immediate support is pegged near the 1.2755-50 region, below which the pair could be headed back towards testing the 1.2700 handle. On the upside, a strong follow-through buying interest beyond the 1.2800 handle has the potential to lift the pair beyond the 1.2820-25 supply zone towards its next major hurdle near the 1.2885 area.