USD/CAD holds in a range just above mid-1.2700s

   •  Resurgent USD demand fails to provide any fresh impetus.
   •  Bullish oil prices underpin commodity-linked Loonie. 

The USD/CAD pair lacked any firm directional bias and oscillated in a narrow trading through the early European session on Monday.

The pair struggled to build on Friday's upbeat US ISM non-manufacturing PMI-led recovery move from the 1.2700 neighborhood and has even failed to benefit from a modest follow through pickup in the US Dollar demand.

With markets looking past Friday's US and Canadian employment report, the prevailing bullish sentiment around crude oil prices capped the pair's up-move at the start of a new trading week. In fact, WTI crude oil rose to its highest level since July 2015 and was seen underpinning demand for the commodity-linked currency - Loonie. 

Meanwhile, growing market conviction over December Fed rate hike action might now help limit deeper losses, at least for the time being, amid absent fundamental drivers, in terms of any major market moving economic releases on Monday.

   •  CAD: Not much here - BBH

Technical levels to watch

Any meaningful up-move is likely to confront immediate resistance near the 1.2800-1.2810 region, above which the pair is likely to dart back towards reclaiming the 1.2900 handle.

On the flip side, 1.2715 level (Friday's low), closely followed by the 1.2700 handle, now seems to protect the immediate downside, which if broken could drag the pair back towards 100-day SMA support near the 1.2620 region.