USD/CAD flirting with 50-DMA support near 1.33 handle

The USD/CAD pair traded with mild bearish bias at the start of a new week and is currently placed closer to 50-day SMA immediate support near the 1.3300-1.3295 region. 

Friday's better-than-expected release of initial jobless claims and bullish consumer sentiment index got negated by an unexpected drop in US PPI and has failed to extend any immediate support to the US Dollar, which eventually is weighing on the major. 

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Meanwhile, market seems to have largely ignored a negative sentiment surrounding oil markets, which tends to weigh on the commodity-linked currency - Loonies, with the greenback price-dynamics being an exclusive driver of the pair's movement on Monday. In fact, WTI crude oil traded with a loss of around 0.8% but did little to help the pair fill weekly bearish gap opening.

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Today's US economic docket features the release of Empire State Manufacturing Index and would be looked upon for some support for the bulls. However, with European markets closed in observance of Easter Monday, a substantial lower market liquidity conditions might lead to unusually volatile price-action on Monday.

Technical levels to watch

A follow through retracement below 1.3280 level (100-day SMA) would turn the pair vulnerable to head back towards 1.3245-40 horizontal support ahead of the very important 200-day SMA support near 1.3220 region.

On the upside, only a sustained move above 1.3335 immediate resistance could open room for extension of the pair's rebound from 200-day SMA and should lift the pair towards 1.3380 horizontal resistance en-route 1.3400 round figure mark.