USD/CAD defends 100-DMA support, reverses bearish gap

The USD/CAD pair caught some fresh bids near 100-day SMA support and has now reversed weekly bearish gap to currently trade around 1.3325 region.

The pair gained some traction on the first trading day of the week, despite of a mildly weaker sentiment surrounding the US Dollar and Friday's better-than-expected monthly Canadian GDP print for January. 

Meanwhile, a consolidative price-action in oil markets, with WTI crude oil holding stable above mid-$50.00s, has failed to extend any support to the commodity-linked currency - Loonie, and hinder the pair's bounce back from the 1.3300 neighborhood. 

Looking at the broader picture, the pair remains confined within a broader trading range held since mid-March and hence, traders are likely to wait for a decisive break through this trading range before committing to the pair's next leg of directional move. 

On the economic data front, the release of US ISM manufacturing PMI would now be looked upon for some fresh impetus ahead of BOC's business outlook survey later during the NA session. 

Technical levels to watch

Bulls would be eyeing for a move above 1.3345-50 immediate resistance, above which the pair is likely to head back towards 1.3380 level, en-route the top end of near-term trading range resistance near the 1.3400 handle.

On the downside, sustained weakness below 1.3300 round figure mark (100-day SMA region) might continue to find support near 1.3275-70 area, which if broken is likely to accelerate the slide towards 1.3240-35 support (50-day SMA) ahead of the very important 200-day SMA support near the 1.3200 handle.