USD/CAD remains well-offered around 1.2900 level

Despite of a tepid recovery witnessed in the overall US Dollar Index, the USD/CAD pair maintained its offered tone and has failed to register any meaningful recovery beyond 1.2900 handle. 

Currently hovering around 1.2900 handle, softer tone surrounding WTI crude oil prices has failed to extend any support to the major. Moreover, Monday's better-than-expected Canadian Wholesale Sales data for June is helping the Canadian Dollar to hold on to its recent gains against its US counterpart.

With the near-term greenback movement hinged to market expectations over an eventual Fed rate-hike action in 2016, focus remains on this week's speech by the Fed chairwoman Yellen at the Jackson Hole symposium later during the week. 

Meanwhile, today's release of new home sales data and Richmond Manufacturing Index from the US, followed by the weekly API report on US crude oil supplies will be in trader's radar for some immediate momentum play. 

Technical levels to watch

A sustained weakness below 1.2900-1.2890 area might negate possibilities of any further near-term recovery and turn the pair vulnerable to head back towards retesting 1.2800 round figure mark support. Meanwhile on the upside, recovery momentum above 100-day SMA support turned resistance near 1.2930 region should boost the pair immediately towards 1.3000 psychological mark resistance.