USD/CAD rebounds from recent trading range support

   •  Reviving USD demand helps regains positive traction on Monday.
   •  Retracing oil prices further weighing on the commodity-linked Loonie.
   •  Traders look forward to economic data for some fresh impetus.

The USD/CAD pair caught some fresh bids at the start of a new week and recovered a part of Friday's retracement slide from near two-month tops. 

On Friday, the pair once again failed to break through the 1.2900 handle and witnessed some profit-taking slide amid a modest US Dollar retracement, despite a better-than-expected US GDP growth figures. However, the 1.2820 horizontal zone continues to extend some decent support, with a modest USD uptick helping the pair to regain some positive traction on Monday.

Apart from the USD strength, a sharp pull-back in crude oil prices further weighed on the commodity-linked currency - Loonie and collaborated to the pair's bid tone through the early European session. 

Meanwhile, the recent price-action over the past week or so, within a broader trading range above 50-day SMA, clearly suggests a consolidation phase. Hence, it would be prudent to wait for a decisive break in either direction before positioning for the pair's next leg of directional move.

Today's economic docket, featuring the release of Canadian Raw Materials Price Index (RMPI), along with the release of personal income/spending data, Core PCE Price Index and Chicago PMI from the US, would now be looked upon for some fresh impetus later during the early NA session.

Technical levels to watch

Immediate resistance is pegged near 1.2870 level and is followed by a strong hurdle near the 1.2900 handle, above which the pair seems all set to aim towards challenging 1.2935-40 supply zone.

On the flip side, 1.2820-15 region (50-day SMA) might continue to act as an immediate support, which if broken is likely to accelerate the fall towards 1.2770-60 intermediate support en-route the 1.2700 handle.