USD/CAD struggling for direction, mildly positive above 1.2950

Following Friday's sharp recovery, the USD/CAD pair struggled to build on to its strength and move back above important moving averages confluence region to currently trade with minor gains, just above 1.2950 region. 

Steady crude oil prices have also failed to provide any direction for the USD/CAD pair. On Friday, the pair recovered to erase all of its losses recorded on Thursday after the release of upbeat US economic data. 

The recovery momentum, however, failed to lift the pair back above 50-day and 100-day SMAs confluence support turned resistance area as crude oil gained traction on the news of military coup in Turkey. Maintaining its high degree of correlation with crude oil prices, rising crude oil prices extended support to the commodity-linked currencies, like loonie. 

Going forward, the pair would continue to take cues from the prevalent global risk sentiment and sentiment surrounding crude oil prices. 

Technical levels to watch

On the immediate upside, 1.2960-80 confluence region remains immediate resistance to watch for, above which the commodity seems all set to reclaim 1.3000 psychological mark and head towards an intermediate resistance near 1.3045-50 region.

Meanwhile on the downside, 1.2900 now seems to have emerged as immediate support, which if broken is likely to drag the pair towards a short-term ascending trend-line support near 1.2835 level.