USD/CAD trims gains but has held above 1.2900 handle

The USD/CAD pair trimmed some of its early recovery gains to 100-day SMA support turned resistance near 1.2930 region and is currently trading back around 1.2900 region.

A broadly recovering greenback, accompanied with retracement in crude oil prices from nearly two-month high, helped the pair to build on to its Friday's recovery from multi-week lows led by disappointing Canadian retail sales and CPI data.

Sentiment surrounding the US Dollar continues to be driven by expectations of an eventual Fed rate-hike action in 2016 and hence, this week's speech by the Fed Chair Janet Yellen at the Jackson Hole Symposium will remain in spotlight in order to determine further near-term trajectory for the greenback.

Today's economic calendar features the release of wholesales sales data for the month of June and could provide some immediate trading opportunity for short-term traders.

Technical levels to watch

A sustained weakness below 1.2900-1.2890 area might negate possibilities of any further near-term recovery and turn the pair vulnerable to head back towards retesting 1.2800 round figure mark support. Meanwhile on the upside, recovery momentum above 100-day SMA support turned resistance near 1.2930 region should boost the pair immediately towards 1.3000 psychological mark resistance.