USD/CAD defend 100-DMA support for the time being

The USD/CAD pair built on Friday's sharp reversal move from 1.3400 neighborhood and dropped back closer to 100-day SMA support.

Currently hovering around 1.3280-85 region, the pair lost additional ground on Monday amid broad based USD sell-off on disappointment from the US President Donald Trump's inaugural speech on Friday. 

Meanwhile, a sharp retracement in crude oil prices, with WTI crude now trading with a loss of around 1.5%, dented demand for the commodity-linked currency - Loonie, and helped the major to defend 100-day SMA support, at-least for the time being. 

With an empty US economic docket, the US Dollar price-dynamics remains the exclusive driver of the pair's movement ahead of this week's key US macro data, including the advanced quarterly growth number on Friday.

Technical levels to watch

On a sustained break below 100-day SMA support near 1.3275 region, the pair is likely to immediately drop to 1.3250 support area below which the slide could get extended towards 1.3215-10 support area. On the upside, recovery back above 1.3300 handle now seems to confront resistance near 1.3315 level, which if cleared seems to lift the pair back towards 50-day SMA resistance near 1.3350 region.