USD/CAD reverses Friday’s up-move amid broadly weaker USD

The greenback came under renewed selling pressure on Monday, with the USD/CAD pair extending its slide further below 1.3200 handle to erase all of its Friday's up-move. 

Currently trading around 1.3150-45 band, the pair is correcting from Friday's seven-week high level of 1.3248 touched in the aftermath of stronger-than-expected US CPI print. Recovery in crude oil prices has been the key factor supporting the bid tone around the commodity-linked currency - the Canadian Dollar. Adding to this, fading hopes of an imminent Fed rate-hike action is weighing on the greenback across the board and is contributing to the pair's ongoing corrective move. 

An empty economic docket is unlikely to provide any fresh impetus on Monday and the pair might continue to take cues from the broader US Dollar moves and additional recovery trend in oil prices. However, the Fed monetary policy decision on Wednesday would be the next big fundamental trigger that would help investors to determine the pair's near-term trajectory.

Technical levels to watch

On a sustained weakness below 1.3150 level, the pair seems to immediately head towards 1.3100 round figure mark ahead of the very important 200-day SMA support near 1.3060 region. On the upside, sustained move back above 1.3200 handle might now provide an additional boost towards 1.3250 above which a fresh leg of up-move is likely to assist the pair towards reclaiming 1.3300 round figure mark.