USD/CAD jumps back closer to 1.30 handle, 8-month tops

   •  NAFTA uncertainty continues to weigh on the Canadian Dollar.
   •  Subdued USD demand/oil price action does little to influence. 
   •  This week’s key events/releases would determine the near-term trend.

The USD/CAD pair caught some fresh bids on Tuesday and inched back closer to the key 1.30 psychological mark or 8-month tops set yesterday.

The Canadian Dollar continues to be weighed down by fears of a potential global trade war and the future of the North American Free Trade Agreement (NAFTA), which is currently being negotiated. 

Today's up-move could also be attributed to some follow-through technical buying, especially after Monday’s bullish break-through a strong supply zone near the 1.2915-20 region. 

Meanwhile, a subdued US Dollar demand and a consolidative price move in oil markets, which tends to drive sentiment around the commodity-linked currency - Loonie, did little to influence the pair's movement, with trade worries acting as an exclusive driver of the pair's ongoing bullish trajectory.

In absence of any market moving economic releases from the US, traders are likely to take cues from the release of Canadian Ivey PMI for some short-term opportunities. The near-term trajectory, however, would be determined by this week's key event risks, including the BOC monetary policy decision and the release of monthly jobs report from the US and Canada.

Technical levels to watch

On a sustained move beyond the 1.30 handle, the pair is likely to accelerate the up-move further towards 1.3045-50 intermediate resistance en-route the 1.3100 handle and 1.3120 supply zone.

On the flip side, any meaningful retracement now seems to find some fresh buying interest near the 1.2920-15 region and followed support near the 1.2900 round figure mark.