USD/CAD struggling below 200-DMA at 1.3060

The US Dollar remained under intense selling pressure across the board, with the USD/CAD pair dropping back below 200-day SMA to currently trade around 1.3060 region.

The greenback remained on the back-foot on diminishing possibilities of an eventual Fed rate-hike after last week's disappointing GDP release. 

Adding to this, recovery in crude oil prices is seen boosting demand for commodity linked currency - Loonie, and exerting further selling pressure on the USD/CAD major. Following a drop to fresh multi-month lows, WTI crude oil is attempting a recovery and is currently trading around $40.50 region. 

Next on tap, during NA trading session, would be the release of Core PCE Price Index from the US, which is considered to be the US Federal Reserve's preferred inflation gauge and hence, would drive sentiment surrounding the US Dollar. In the meantime, the pair might continue to tak cues from movement in crude oil price. 

Technical levels to watch

On a sustained break below 1.3050 support, the pair seems to immediately drift towards 1.3000 psychological mark. A follow through selling pressure below 1.3000 support has the potential to continue dragging the pair towards 100-day SMA support near 1.2950-45 region.

On the flip side, recovery above 1.3100 round figure mark might continue to confront resistance near session high level around 1.3120 zone, above which the pair seems to aim towards 1.3180 strong resistance. A convincing strength above 1.3180 strong resistance would negate any near-term bearish bias and open room for resumption of the pair's prior up-trend.