USD/CAD bounces off multi-week lows, but lacks strong follow-through

   •  Easing trade-war fears help revive USD demand.
   •  Bullish oil prices now seemed to cap gains.
   •  Traders now eye today’s data for fresh impetus.

The USD/CAD pair reversed early lost ground to fresh multi-week lows and was now seen trying to build on the recovery move.

Easing trade war fears helped the US Dollar to regain some positive traction and was seen as one of the key factors behind the pair's modest uptick from the lowest level since Feb. 27. 

The rebound, however, seemed lacking conviction/strong follow-through amid the prevailing bullish sentiment around oil markets. In fact, WTI crude oil built on overnight strong gains led by upbeat weekly US oil inventories report and underpinned demand for the commodity-linked currency - Loonie, eventually capping the pair's modest recovery attempt. 

Next on tap would be the release of Canadian trade balance data and the usual weekly initial jobless claims data from the US, which should assist traders to grab some short-term opportunities later during the early NA session.

Technical levels to watch

Bulls would be eyeing for a clear breakthrough the 1.2800-1.2810 immediate resistance, above which the pair is likely to head back towards testing 1.2840 supply zone. On the flip side, weakness back below 1.2760 level might now find support near 50-day SMA, around the 1.2725 region, ahead of the 1.2700 handle.