USD/CAD attempting a fresh move beyond 200-DMA

The USD/CAD pair gained some fresh traction on Friday and is now building on to its move back above 1.3100 handle. 

Currently trading around 1.3120-25 region, testing session peaks, the pair is reattempting a move above the very important 200-day SMA and build on Thursday's rebound from weekly lows amid broad based greenback recovery. In fact the key US Dollar Index extended its recovery move from yesterday's 7-week lows and is supported by a fresh leg of up-move in the US treasury bond yields in wake of the reflation trade driven by increasing bets over the US President Donald Trump's expansive fiscal stimulus policies.

Meanwhile, a subdued price action around oil markets, with WTI crude oil trading absolutely flat, has failed to benefit the commodity-linked currency - Loonie, and the US Dollar price action remains exclusive driver of the pair's movement on the last trading day of the week. 

Later during NA session, the preliminary release of fourth quarter US GDP growth and durable goods order will be looked upon for an additional boost to the greenback's recovery move.

Technical levels to watch

A follow through momentum above 1.3130 level (yesterday's high), is more likely to lift the pair beyond 1.3150-55 horizontal resistance towards reclaiming 1.3200 handle and head towards testing 1.3220 resistance area. On the downside, renewed weakness below 1.3100 handle, leading to a subsequent break below session low support near 1.3085 region, now seems to drag the pair back towards 1.3030 region, en-route 1.30 important psychological mark support.