USD/CAD clings to gains above 1.3100 handle, PMI releases in focus

Weaker sentiment surrounding WTI crude oil helped the USD/CAD pair to recover from an early dip below 1.3100 handle to currently trade around 1.3120-25 band ahead of the US economic releases. 

The pair is trending higher for fifth straight session, inching closer to Wednesday's multi-week high near mid-1.3100s. Oil prices remained under pressure after the official data released on Wednesday showed higher-than-expected rise in US oil inventories and is is eventually denting demand for the commodity-linked currency - loonie.

Today's manufacturing PMI releases - RBC manufacturing PMI and ISM manufacturing PMI from Canada and the US, respectively, will keep traders busy during early NA trading session ahead of Friday's crucial monthly employment details from the US, which would help investors to determine the next leg of near-term movement for the USD/CAD major. 

Technical levels to watch

Bullish momentum above 1.3245-50 immediate resistance has the potential to lift the pair towards August monthly high resistance near 1.3200 handle above which the pair is likely to aim towards late July swing highs resistance near 1.3250-55 region.

On the flip side, sustained weakness below 1.3100 handle could get extended but is likely to be limited at an important support near 1.3065-60 region. A convincing break below 1.3065-60 region might negate any near-term bullish bias and could trigger a fresh leg of corrective move.