USD/CAD bulls eyeing a move beyond 1.2915-20 supply zone

   •  USD selling pressure seems to have abated for the time being.
   •  NAFTA concerns offset a modest uptick in oil prices.
   •  US ISM non-manufacturing eyed for fresh impetus.

The USD/CAD pair caught some fresh bids during the early European session and is now making a fresh attempt to build on its momentum beyond the 1.2900 handle.

The US Dollar selling pressure now seems to have abated, at least for the time being and helped the pair to regain some positive traction. The pair turned positive for the sixth consecutive session and inched back closer to Friday's swing highs, touched in the aftermath of monthly Canadian GDP growth figures.

Meanwhile, the US President Donald Trump's implementation of the steel and aluminium tariffs now seems to have raised odds of the US terminating the North American Free Trade Agreement (NAFTA) and further dented sentiment surrounding the Canadian Dollar. 

Even, a modest uptick in crude oil prices, which tends to underpin demand for the commodity-linked currency - Loonie, did little to stall the pair's up-move at the start of a new trading week. 

With the USD price dynamics turning out to be an exclusive driver of the pair's momentum, it would now be interesting to see if bulls are able to maintain their dominant position or the ongoing bullish momentum once again fizzles out near the 1.2915-20 supply zone.

Later during the early NA session, the release of US ISM non-manufacturing PMI would now be looked upon for some fresh trading impetus. 

Technical levels to watch

On a sustained move beyond the mentioned hurdle, the pair is likely to accelerate the up-move and head towards reclaiming the key 1.30 psychological mark with some intermediate support near mid-1.2900s.

On the flip side, the 1.2880-70 region now seems to protect the immediate downside, below which the pair could fall back to 1.2825 horizontal support en-route the 1.2800 round figure mark.