USD/CAD trims gains but remains comfortably above 1.3000 handle

The USD/CAD pair trimmed its gains from the vicinity of 1.3100 handle to currently trade near the mid-point of 1.3000-1.3100 handle.

The US Dollar extended its Friday's bullish momentum led by an upward revision to its first quarter GDP growth and hawkish comments from the Fed chair Janet Yellen. Moreover, with a high degree of correlation with crude oil prices, the Canadian Dollar is not able to gain traction as crude oil continues to face stiff resistance in conquering the very important $50.00 psychological mark.

Amid thin market liquidity conditions on the back of a holiday in the US markets, the USD/CAD pair would continue to take cues from movement in crude oil prices as investors await for this week's key from both the economies.

Technical levels to watch

On a sustained weakness below 1.3040 (10-day SMA), the pair could extend its slide to last week's closing level support near 1.3018-15 zone, below which weakness towards 20-day SMA support (near 1.2965-60) seems given. 

Meanwhile on the upside, 1.3100 handle would be closely watched, which if conquered should immediately lift the pair towards its recent daily closing highs resistance near 1.3140 area. A follow through buying interest above 1.3140 resistance now seems to open room for further appreciating move, beyond 1.3200 level, towards its next major resistance near 1.3250-60 region.