USD/CAD holding on to its gains at 1.3150

Despite of Friday's minor pull-back from multi-week high levels, the USD/CAD pair remained traded in positive territory for fifth consecutive session and is currently holding comfortably above 1.3100 handle around 1.3150 region. 

On Friday, the pair initially dropped sharply after the release of better-than-expected Retail sales data and slightly higher CPI. The pair, however, managed to recover quickly and surged to its highest level since May as a slide in crude oil prices weighed on commodity-linked currency - Loonie. 

Adding to this, stronger-than-expected US flash manufacturing PMI, which rose to its highest level since October 2015 and supported the view that recent slew of better-than-expected US economic releases increases the prospects of a Fed rate-hike before the end of 2016. Hence, investors now turn their focus to this week's Federal Reserve monetary policy meeting.

Technical levels to watch

From current levels, momentum above multi-week highs resistance near 1.3185-90 region would confirm a near-term break-out and pave way for continuation of the pair's near-term upward trajectory towards its next major resistance near 1.3280-85 region (late March highs). On the flip side, weakness below 1.3100 round figure mark support seems to drag the pair back towards Friday's swing low support near 1.3055 before heading back towards 1.3000 psychological mark support.