USD/CAD trims gains at 1.3115, eyeing US data for fresh impetus

Having posted a daily high near 1.3150 region, the USD/CAD pair trimmed some of its early gains and is currently trading around 1.3115-20 band.

Recovery in crude oil prices is helping commodity-linked currency, the Canadian Dollar, to recover some of its lost ground. Meanwhile, the greenback is struggling to build on to its tepid recovery gains and hence, seem to limit further up-move for the USD/CAD pair. 

While the broader move might continue to be driven by sentiment surrounding crude oil prices, traders will have a look at today's US releases that includes - ADP report on private sector employment and ISM non-manufacturing PMI, in order to determine further direction for the US Dollar. 

Technical levels to watch

From current levels, momentum above 1.3148 (session high) should boost the pair immediately towards 1.3186 (July 29 high), above which the pair seems all set to extend the bullish momentum further towards 1.3215 (July 25 daily closing high).

Immediate support can be found at 1.3085-80 region (200-day SMA), below which the pair could immediately drop to 1.3005 (yesterday's low) and continue falling towards 1.2950-45 support (100-day SMA region).