USD/CAD attempting a bullish break-out above 100-DMA

The USD/CAD pair is seen building on to its Wednesday's recovery gains and is currently hovering around the very important 100-day SMA region, comfortably above 1.3000 psychological mark.

Thursday's EIA report, showing smaller-than-expected drawdown in US crude supplies, sent crude oil prices tumbling lower and weighed on the loonie, resulting to a sharp recovery for the USD/CAD pair from sub-1.2900 all the way back above 1.3000 handle. According to the EIA report, US inventories fell by 2223K barrels last week, below the expected drawdown by 2500K barrels. 

It is, however, worth noticing that the pair has repeatedly failed to sustain its up-move beyond 100-day SMA and hence, would be prudent to see if the current momentum could assist the pair to conquer this important resistance. 

Later on Friday, all eyes would be on the crucial US monthly employment data that would be accompanied by the release of Canadian jobs report. Today's labor market reports would, for sure, provide fresh impetus in determining the near-term direction of the USD/CAD major. 

Technical levels to watch

On the immediate upside, bulls would be encouraged if the pair manages to break through 1.3100 round figure mark resistance, above which the pair seems all set to extend its upward trajectory back towards May highs resistance near 1.3180-85 region. On the flip side, yet another failed attempt to sustain its strength above 100-day SMA, and a subsequent drop back below 50-day SMA support near 1.2940 region, now seems to accelerate the fall immediately towards a short-term ascending trend-line support near 1.2810-1.2800 area.