USD/CAD attempting a fresh break-out above 1.3300 handle

Having posted a session high at 1.3307, the USD/CAD pair trimmed some of early gains and has now retraced back below 1.3300 handle during early European session.

Currently trading around 1.3285-90 band, still positive for the third straight session, a broad based greenback pull-back has been a key factor contributing to the pair's retracement from weekly highs. 

Meanwhile, weakness in oil prices, with WTI crude oil dropping back below $50.00/barrel mark, limited any sharp slide as weaker oil prices tends to weigh on the commodity-linked currency - loonie. 

On Wednesday, the pair reversed all of its early losses and rebounded from the proximity of the very important 200-day SMA, confirming near-term break-out and opening room for further near-term appreciating move.

Later during NA trading session, the release of US weekly jobless claims data would be looked upon for short-term momentum play, while the official EIA report on weekly US crude oil inventories would provide fresh impetus for oil prices and eventually drive the USD/CAD pair during US trading session. 

Technical levels to watch

From current levels, weakness below 1.3275 is likely to get extended towards session low support near 1.3260 level, which if broken is likely to drag the pair towards 1.3225 support. On the upside, momentum above 1.3300 handle is likely to confront resistance at 1.3315-20 region above which a fresh leg of up-move is likely to lift the pair immediately towards mid-March highs resistance near 1.3350-60 area.