USD/CAD once again manages to rebound sharply from 50-DMA support

   •  Canadian trade deficit widens to record levels in March. 
   •  Loonie further weighed down by sliding oil prices.
   •  The pair might struggle to gain traction on weaker USD. 

The USD/CAD pair held on to its weaker tone through the early NA session, albeit has recovered a part of its early lost ground. 

The pair once again managed to catch some fresh bids near 50-day SMA immediate support, ahead of the 1.2800 handle, and this time was supported by disappointing Canadian data, which showed that trade deficit widened to a record $4.1 billion in March. 

Adding to this, a modest retracement in crude oil prices also did little to lend any support to the commodity-linked currency - Loonie and further collaborated to the pair's goodish rebound of over 50-pips from session lows.

The pair, however, might struggle to gain any follow-through traction amid an offered tone surrounding the US Dollar, which had a rather muted reaction to better-than-expected US economic releases - nonfarm payrolls productivity, initial jobless claims and trade data.

Today's US economic docket also features the release of ISM non-manufacturing PMI, which would now be looked upon for some fresh impetus. 

Looking at the broader picture, the pair remains confined within a broader trading band, held over the past eight trading sessions, and hence, it would prudent to wait for a decisive break through the mentioned range before positioning for the next leg of directional move.

Technical levels to watch

Any subsequent up-move might continue to face immediate resistance near the 1.2900 handle, above which the pair seems to aim towards testing the 1.2935-40 supply zone. On the flip side, the 1.2815 region (50-DMA) might continue to attract some fresh buying interest, which if broken decisively might prompt some aggressive long-unwinding trade and accelerate the fall towards 1.2750-45 support area.