USD/CAD holds steady just below mid-1.2500s

The USD/CAD pair gained some fresh traction at the start of a new trading week and recovered part of Friday's fall from over one-month highs.

The pair held comfortably above the key 1.25 psychological mark, despite subdued US Dollar price-action, and was being supported by the prevalent positive tone around the US Treasury bond yields. 

   •  US Dollar rangebound near 93.60

Meanwhile, a modest recovery in crude oil prices, which tends to underpin demand for the commodity-linked currency - Loonie, was seen keeping a lid on any additional gains for the major.

   •  WTI looking to stabilize above $ 49.50

It would now be interesting to see if the pair is able to build on early up-move and makes a fresh attempt to reclaim the 1.2600 handle amid holiday-thinned liquidity conditions. 

Both the US and Canadian markets would remain closed on Monday in observance of Columbus Day and Thanksgiving Day respectively.

Technical levels to watch

Immediate resistance is pegged near 1.2565 level, above which the pair is likely to dart towards the 1.2600 handle en-route its next major hurdle near the 1.2435-40 region.

On the flip side, any weakness below 1.2525 level is likely to find fresh buying interest near the 1.25 handle, below which the pair could correct back to 1.2460-50 support area.