USD/CAD holds steady above 1.33 handle, Canadian retail sales in focus

The USD/CAD pair was seen consolidating recent gains to 1-1/2 week highs and oscillated within 20-25 pips narrow trading range above the 1.3300 handle.

A fresh leg of slide in oil prices, with WTI crude oil inching back closer to yesterday's multi-month lows, was seen denting demand for the commodity-linked currency - Loonie, and helped the pair to bounce off session lows near 1.3315 region.

However, a subdued US Dollar price-action, led by a mildly softer tone around the US Treasury bond yields, did little to provide any additional boost and help the pair to build on to its ongoing recovery move from sub-1.3200 level touched at the beginning of this week. 

Meanwhile, the pair has held its neck above the 1.33 handle as investors now look forward to today's economic releases - Canadian retail sales and weekly jobless claims data from the US, for some fresh impetus later during early NA session.

Technical levels to watch

Bulls would be eyeing for a follow through momentum beyond mid-1.3300s, above which the pair is likely to dart towards reclaiming the 1.3400 handle before eventually rising to test its next major hurdle near 1.3425-30 region.

On the flip side, the 1.3300 round figure mark now seems to protect immediate downside, which if broken could drag the pair back towards 1.3270-65 horizontal zone en-route 1.3220-15 strong support.