USD/CAD manages to rebound from 1.3100 handle, still weak at 1.3135

Sustained selling pressure around the US Dollar dragged the USD/CAD pair to session before finding some support around 1.3100 handle that helped the pair to recover some of its lost ground to currently trade around 1.3130-35 band.

Despite of the ongoing slump in crude oil prices, a broadly weaker greenback has been the key factor contributing towards the pair's corrective move from a multi-month high touched in the immediate after effect of the FOMC announcement on Wednesday. 

The pair, however, has managed to hold its neck above 200-day SMA break-out resistance, now turned immediate support, just below 1.3100 handle. 

With only the scheduled release of weekly jobless claims data from the US, a virtually empty economic calendar seems unlikely to provide any respite for the US Dollar. However, ahead of Friday's key event risks - BOJ monetary policy and US Q2 GDP release, traders might be inclined to lighten their positions and unwind their bearish bets against the greenback.

Trade the US Gross Domestic Product - July 29 GDP Live Coverage

Technical levels to watch

On a sustained weakness below 200-day SMA immediate support near 1.3080-75 region, the pair seems to continue drifting towards 1.3030-25 horizontal support before dropping below 1.3000 psychological mark and aim towards testing 100-day SMA support 1.2950 region.

Meanwhile on the upside, recovery momentum above 1.3180 would confirm continuation of the pair's near-term bullish momentum and lift it back above 1.3240 resistance area. A follow through buying interest would open room for an immediate test of 1.3280 intermediate resistance ahead of its next major resistance near 1.3400 round figure mark.