USD/CAD struggling to break through 100-DMA resistance

Softer tone surrounding crude oil prices helped the USD/CAD pair to recover from session low level of 1.2910 and build on to its recent recovery trend to trade higher for third straight session.

Currently trading around mid-1.2900s, the pair seems to make an attempt to conquer 100-day SMA immediate strong resistance and extend its rebound from a three-week low touched in the aftermath of disappointing US ISM services PMI release. Since then, a fresh bout of buying interest helped the pair to erase majority of its weekly losses amid tepid greenback recovery. 

Next in focus would be the release of monthly labor market report along with housing starts from Canada, later during NA trading session. Meanwhile, speech by FOMC Member Rosengren might provide some impetus ahead of the key jobs report. 

Technical levels to watch

On a sustained break above 100-day SMA resistance near 1.2945-50 region is likely to boost the pair immediately towards 1.3000 psychological mark ahead of the very important 200-day SMA support near 1.3055-60 region. On the flip side, sustained weakness back below 1.2900 handle could get extended towards its next major resistance near 1.2840 area.