USD/CAD rises to session high at 1.3035, aiming to test 200-DMA

Having witnessed a sharp reversal from Friday's low near 1.2830 region to touched the highest level in nearly 3-weeks on Monday, the USD/CAD pair is now seen consolidating / building on to its strong gains above 1.300 handle.

Currently trading around 1.3035 region, the Canadian Dollar has failed to benefit from a recovery in crude oil prices, back above $47.00/barrel mark, as rising expectations of an eventual Fed rate-hike has been supportive of a broadly stronger greenback. 

Going forward, this week's key focus would remain on one of the most keenly watched macro indicators from the US, monthly jobs report (NFP), that would assist market participants to evaluate the possibilities of a September Fed-rate hike decision and provide fresh impetus for the greenback. 

In the meantime, short-term traders will focus on today's release of current account figure and RMPI from Canada, followed by US consumer confidence index, in order to grab immediate momentum play.

Technical levels to watch

On the upside, 200-day SMA near 1.3060-65 region remains immediate strong resistance, which if conquered should assist the pair to extend its upward trajectory beyond 1.3100 handle, towards testing monthly high resistance near 1.3190 level. On the flip side, sustained weakness back below 1.3000 handle now seems to find strong support at 100-day SMA resistance break point near 1.2930-25 region.