USD/CAD remains capped at 200-DMA

The USD/CAD pair continued with its struggle to decisively break through 200-day SMA resistance and sustain its strength above 1.3200 handle. 

Currently trading around 1.3190-85 band, the pair ran through fresh offers at session high and retraced around 20-25 pips from session high level of 1.3208. A minor correction in crude oil prices, from the vicinity of $50.00 important psychological mark, coupled with Wednesday's upbeat US ISM services PMI, which assisted the greenback to build on to its recent gains, provided the initial boost to the pair. 

The pair, however, failed to attract further buying interest and remained capped below the very important 200-day SMA as traders seemed reluctant to add on to bullish USD bets ahead of Friday's key event risk, employment details from both the US and Canada, which would be the next big fundamental trigger determining the pair's next leg of directional move. 

In the meantime, Canadian building permits and weekly jobless claims from the US along with crude oil dynamics might provide some impetus for short-term traders.

Technical levels to watch

On the upside, 1.3210-15 region (200-day SMA) remains immediate hurdle, which if cleared decisively should lift the pair immediately towards September monthly high resistance near 1.3280 level and the momentum could further get extended towards 1.3300 round figure mark.

Meanwhile on the downside, sustained weakness below 1.3170 immediate support, leading to a subsequent drop below Wednesday's low at 1.3160, is likely to accelerate the slide immediately towards 1.3120 before the pair breaks below 1.3100 handle and aim towards testing 50-day SMA support near 1.3050 region.