USD/CAD holds comfortably above 1.2800 handle ahead of US data

   •  Resurgent US bond yields revive USD demand and help limit downside.
   •  Bullish oil prices underpin Loonie and seemed to keep a lid on further gains.
   •  US data eyed for some meaningful impetus amid renewed NAFTA concerns.

The USD/CAD pair maintained its midly positive tone through the mid-European session and is currently placed at the 50-day SMA immedaite hurdle. 

The pair did attempt to build on its recent gains but seemed struggling to gain any strong follow-through traction, with a combination of diverging forces failed to provide any meaningful impetus and keeping a lid on any further strong up-move.

Reviving US Dollar demand, backed by resurgent US Treasury bond yields, provided some minor boost on Tuesday, albeit was negated by the ongoing bullish run in crude oil prices, which was seen underpinning the commodity-linked currency - Loonie.

The pair, however, has managed to hold its neck comfortably above the 1.2800 handle and was being supported re-emerging NAFTA concerns, ahead of the fast-approaching deadline of May 17.

Today's US economic docket, highlighting the release of monthly retail sales data and Empire State manufacturing index would now be looked upon for some fresh impetus during the early NA session.

Technical levels to watch

Immediate resistance remains near the 1.2830 region (50-DMA), above which the pair is likely to make an attempt towards reclaiming the 1.2900 handle. On the flip side, 1.2770-65 area is likely to protect the immediate downside, which if broken would now turn the pair vulnerable to head towards testing sub-1.2700 level, or 100-day SMA support.