USD/CAD fast approaching 1.3100 handle

The USD/CAD pair is seen building on to its bullish momentum above 1.3000 handle and is heading higher for third consecutive day to currently trade near strong NFP lead swing high level around 1.3090 level. 

The US Dollar continues to benefit from Friday's upbeat employment details for the month of June. Meanwhile, weaker-than-expected Canadian jobs report accompanied with a slide in crude oil prices is denting demand for commodity-linked loonie and boosting the USD/CAD pair higher.

WTI crude oil prices remained suppressed on stronger US Dollar and renewed worries over global supply glut after last week's lower-than-expected drawdown in US crude oil inventories. 

From technical perspective, a sustained move above 100-day SMA now seems to confirm a bullish break-out for the USD/CAD pair and thus opens room for further near-term appreciating move in the near-term. The pair, however, might continue to be driven by sentiment surrounding crude oil prices.

Technical levels to watch

Momentum above 1.3120 (June 27 high) is likely to boost the pair immediately towards 1.3188 (May 24 high) hurdle, which if cleared would pave way for continuation of the pair's bullish up-move. On the flip side, weakness back below 1.3000 handle (nearing 100-day SMA) is likely get bought into and hence is likely to limit further downside till 50-day SMA support near 1.2950 region.