USD/CAD consolidates around mid-1.2500s ahead of GDP prints

The USD/CAD pair seems to have entered a consolidation phase and oscillated in a narrow trading range around mid-1.2500s.

The pair struggled to build on yesterday's strong up-move to weekly tops as the US Dollar lacked any strong follow through buying interest and now seems to have stalled the post-FOMC recovery.

   •  USD may have already adjusted down to reflect a modest rates outlook - AmpGFX

The pair, however, held stable through early European trading session amid a mildly softer tone around crude oil prices, which has failed to provide any fresh bullish impetus for the commodity-linked currency - Loonie. 

   •  WTI depressed near $ 49 mark ahead of US drilling report

Looking at the broader picture, reemergence of strong bids on every drop below the key 1.25 psychological mark now seems to suggest that the pair might have bottomed out in the near-term. 

Hence, it would now be interesting to see if the pair is able to extend the recovery move or meets with fresh supply at higher levels as focus now shifts to the advance US Q2 GDP print and monthly Canadian growth figures, due for release later during early NA session.

   •  US: GDP back on trend? - ING

Technical levels to watch

Momentum above 1.2575 level could get extended towards the 1.2600 handle, above which a fresh bout of short-covering could accelerate the recovery move towards 1.2640 intermediate resistance before the pair make an attempt to reclaim the 1.2700 round figure mark.

On the flip side, the 1.25 handle now becomes the immediate strong support to defend, which if broken could drag the pair back towards 1.2440 horizontal support en-route the 1.2410-1.2400 region.