USD/CAD rebounds from 50-DMA support, now eyeing 1.3000 handle

Sliding crude oil is seen assisting the USD/CAD pair to hold and rebound from 50-day SMA support, recovering over 50-pips from session low to currently trade just short of reclaiming 1.3000 handle.

The pair remained stuck within a broad trading range between 100-day SMA resistance and 50-day SMA support. On Wednesday, the pair extended its reversal from 100-day SMA resistance and dropped to test 50-day SMA as WTI crude oil rallied to $50.00 handle after the EIA's weekly inventory report showed a larger-than-expected drawdown in US crude stockpiles. 

The pair, however, has managed to stage a recovery on Thursday on broadly stronger US Dollar. Moreover, weakening oil prices, led by bearish outlook by Goldman Sachs, is further assisting rebound in the USD/CAD pair.

Investors now turn their focus to today's monthly Canadian GDP release, which would be accompanied by weekly unemployment claims and Chicago PMI data from the US.

Technical levels to watch

It is encouraging for bulls that the pair is rebounding from the 50-day SMA immediate support and a follow through momentum above 1.3000 psychological mark should boost the pair back towards 100-day SMA, currently near 1.3065-70 region. A strong follow through buying action above 100-day SMA resistance now seems to open room for continuation of the pair's upward trajectory in the near-term.

On the downside, a decisive break below 50-day SMA immediate support near 1.2940-30 region is likely to drag the pair immediately below 1.2900 handle, towards testing 1.2845-40 horizontal support. Below 50-day SMA, the downward momentum could further get extended towards a short-term ascending trend-line support near 1.2770-65 area.