USD/CAD surrenders early gains to 1-week tops, Canadian GDP/US data in focus

   •  Weaker oil prices weighed on Loonie and provided an early minor boost.
   •  Further gains remained capped amid the prevalent USD selling bias.
   •  Investors look forward to Canadian GDP/US data for some fresh impetus.

The USD/CAD pair faded an early European session spike and quickly retreated around 50-pips from the 1.3100 neighborhood.

A modest retracement in crude oil prices exerted some downward pressure on the commodity-linked currency - Loonie and was seen assisting the pair to build on overnight modest rebound from the vicinity of 100-day SMA support, sub-1.30 level, or 1-1/2 month lows. 

The positive momentum quickly fizzled out ahead of the 1.3100 handle amid the prevalent weaker tone surrounding the US Dollar, which was further weighed down by the ongoing slide in the US Treasury bond yields. 

Currently placed at the lower end of its daily trading range, below mid-1.3000s, investors now look forward to the economic releases, with the key focus on monthly Canadian GDP growth figures, for some fresh impetus. 

From the US, the release of personal income/spending data, core PCE price index, followed by Chicago PMI and the Conference Board's consumer confidence index, might also produce some meaningful trading opportunities.

Technical levels to watch

Any subsequent retracement is likely to find support near the 1.30 handle and is closely followed by 100-day SMA support near the 1.2985 region, which if broken now seems to pave the way for an extension of the pair's downward trajectory.

On the upside, the 1.3080 region now seems to act as an immediate hurdle, above which the pair is likely to surpass the 1.3100 handle and aim towards testing its next resistance near the 1.3135-40 region en-route the 1.3200 round figure mark.