USD/CAD off session low, still weaker below 1.3300 handle

The USD/CAD pair erased majority of its weekly gap down opening losses and jumped to session high level of 1.3278 before retracing few pips to currently trade around 1.3265-60 region.

The pair on Friday rose above 1.3300 handle for the first time since March despite of a disappointment from the US monthly jobs report and slightly better-than-expected / in-line with consensus estimates Canadian employment details. 

Meanwhile, retracement in crude oil prices ahead of OPEC headlines from this week’s World Energy Conference in Istanbul, which tends to weigh on the commodity-linked currency - loonie, limited the pair's downslide and helped it to recover early losses. 

With a scheduled bank holiday in both the US and Canada, trading activity is likely to remain subdued on Monday as markets now look forward to this week's release of FOMC meeting minutes and monthly retail sales data for fresh impetus.

Technical levels to watch

From current levels, 1.3230-25 region (session low) remains immediate support to defend, which if broken is likely to drag the pair back towards the very important 200-day SMA resistance turned support near 1.3200 handle.

Meanwhile on the upside, any further up-move might continue to confront resistance near 1.3300 handle. A follow through buying interest above 1.3300 handle, leading to a subsequent move above Friday's multi-month high resistance near 1.3313-15 region, should open room for continuation of the pair's upward trajectory in the near-term.