USD/CAD jumps to session high as Oil slides closer to $45.00 mark

A continuous slide in crude oil prices is seen weighing on the Canadian Dollar, with the USD/CAD pair now jumping to session high to currently trade around the very important 100-day SMA strong resistance. 

Despite of Friday's sharp recovery, led by upbeat US economic data, the pair failed to conquer its immediate strong resistance near 1.2980-85 confluence region, comprising of 50-day and 100-day SMAs. The pair, however, erased some of its weekly losses and managed to hold its neck above 1.2900 handle.

A fresh wave of selling pressure seems to have emerged around the black gold and is now assisting the pair to build on to its Friday's recovery gains and make a fresh attempt to decisively break through 1.2980-85 strong resistance. A clear break through this important resistance would open room for continuation of the pair's near-term upward trajectory.

In absence of any major market moving release on Monday, the pair would continue to take cues from investor sentiment surrounding crude oil prices.

Technical levels to watch

Bulls would get an additional boost it the pair manages to conquer 1.2980-85 resistance, above which the pair could immediately rise to 1.3045-50 resistance area. A follow through buying interest has the potential to continue boosting the pair further towards its recent closing highs resistance near 1.3100-1.3115 region.

On the flip side, weakness below session lows support near 1.2935-30, and a subsequent break below 1.2900 handle, would confirm strong resistance at 100-day SMA and could turn the pair vulnerable to break through last week's swing lows support near 1.2860 and aim towards testing a short-term ascending trend-line support near 1.2835 level.