USD/CAD dips below 1.3000 but holds 50-DMA support

Despite of today's sharp up-surge, erasing all of its weekly loss, the USD/CAD pair has failed to sustain its bullish momentum beyond 1.3000 handle but has comfortably held above 50-day SMA.

After Thursday's slide to a 10-day low level, Brexit led rush to traditional safe-haven currencies - like the US Dollar, boosted the pair to a 3-week high level, to the vicinity of 1.3100 level and test 100-day SMA for the first time since late Feb. 

Strong US Dollar also seems to hurt demand for dollar-denominated currencies - like oil, which is down around 5% for the day, is extending further support to the USD/CAD pair. 

The pair's retracement back below 1.3000 could be attributed to some stability visible across global financial markets, allowing investors to move towards riskier asset classes. Moreover, weaker-than-expected US durable goods order for May also seems to restrict further appreciating move for the pair.

Technical levels to watch

For any further extension of the near-term bullish momentum, the pair needs to decisively break through 100-day SMA resistance around 1.3100 region, above which the pair seems all set to easily surpass May highs resistance around 1.3150 level and 1.3200 round figure mark, to test its next major resistance around 1.3275-80 region. 

On the flip side, dip towards 50-day SMA immediate support around 1.2935-30 region is likely to get bought into and hence any further downslide now seems to be limited till 1.2850-45 horizontal support.