USD/CAD retreats from 200-DMA

The USD/CAD pair's recovery from Friday's 8-day low stalled at the very important 200-day SMA support turned resistance near 1.3180-85 region and the pair has now retraced over 35-pips from daily peak.

Currently trading around mid-1.3100s, daily pivot-point, a broad based US Dollar retracement could be the primary reason contributing to the pair's pull-back from session high. Moreover, recovery in crude oil prices from session through is also benefiting the commodity-linked currency - loonie, and exerting some selling pressure around the major.

Moving ahead, traders today will focus on Empire State Manufacturing Index, Capacity Utilization Rate and Industrial Production data from the US in order to grab short-term trading opportunities. Also in focus would be speech from Federal Reserve Governor Stanley Fischer, which would be looked upon to reaffirm market expectations of an eventual Fed rate-hike action in December and would drive the greenback later during US trading session.

Technical levels to watch

On the upside, 200-day SMA near 1.3185 region remains immediate resistance to watch for above which the pair seems all set to surpass 1.3200 handle and head towards testing 1.3260-70 horizontal resistance. On the downside, session low near 1.3115 area is likely to protect immediate downside, which if broken could accelerate the slide further below 1.3100 handle towards 50-day SMA support near 1.3070 region.