USD/CAD fails to conquer 100-DMA, holding above 1.3000 handle

The USD/CAD pair continues with its struggle to conquer 100-day SMA and dropped to 1.2980 before recovering back to currently trade around 1.3000 psychological mark. 

On Tuesday, the pair stalled a five consecutive days of declines and staged a remarkable recovery to move back above 1.3000 handle. Global risk-off sentiment was seen as the key trigger for the pair's initial up-move on Tuesday, which got an additional boost from a sharp slide in crude oil prices. 

The spillover effect assisted the pair to continue with its upward trajectory earlier on Wednesday. The pair, however, lost its upside momentum and reversed from 100-day SMA strong resistance. Meanwhile, the pair has still managed to hold on to its session lows support near 1.2980 and bounce back to 1.3000 handle. 

Persistent risk-off sentiment continues to drive investors away from riskier assets that is capping recovery in oil prices and weighing on commodity-linked currencies - like the Loonie. 

Going forward, investors will take near-term bets from today's release of Canadian Trade Balance data ahead of ISM Non-Manufacturing PMI and the crucial FOMC meeting minutes, later during US trading session.

Technical levels to watch

On the upside, the pair might continue to face resistance around 100-day SMA near 1.3030-40 region. A sustained move above this strong resistance now seems to boost the pair immediately towards post-Brexit swing highs resistance near 1.3100-1.3120 area. On the flip side, weakness below session through support near 1.2980-75 zone is likely to drag the pair back towards 50-day SMA support near 1.2940, which if broken again might negate possibilities of any further prospects of near-term appreciating move for the pair.