USD/CAD struggles near 1.2600 mark, US CPI/FOMC minutes awaited

   •  Weaker oil prices dent demand for commodity-linked Loonie and extend support.
   •  The uptick lacks any strong follow-through amid bearish USD sentiment. 
   •  Investors look forward to the US CPI/FOMC meeting minutes for fresh impetus.

The USD/CAD pair reversed an early dip to sub-1.2600 level and managed to recover a part of previous session's slump to the lowest level since Feb. 20.

Despite a subdued US Dollar price-action, the pair managed to gain some positive traction and was being supported by a softer tone around oil markets, which tends to underpin demand for the commodity-linked currency - Loonie. Apart from weakness in crude oil prices, the uptick lacked an obvious catalyst and hence, seemed lacking any strong follow-through/bullish conviction. 

Traders also seemed reluctant to place aggressive bets ahead of today's important releases - the latest US consumer inflation figures and minutes from the last FOMC meeting minutes, which might further contribute towards a range-bound/subdued price-action ahead of the important releases. 

Today's US economic docket also features the release of weekly US crude oil inventories data, which might influence the CAD price dynamics and help traders grab some short-term opportunities.

Technical levels to watch

Any meaningful recovery attempt is likely to confront fresh supply at the very important 200-day SMA, near the 1.2630-35 region, above which a bout of short-covering could lift the pair back towards 100-day SMA hurdle near the 1.2690 level.

On the flip side, a follow-through weakness below the 1.2600-1.2590 zone now seems to pave the way for an extension of the pair's near-term bearish trajectory towards the 1.2560-55 horizontal support en-route the key 1.2500 psychological mark.