USD/CAD clings to goodish recovery gains, above 1.2600 handle

   •  A goodish pickup in the USD demand helps bounce off multi-week lows.
   •  Subdued oil prices weigh on Loonie and provide an additional boost.
   •  Weaker Canadian NHPI offset by slightly higher US jobless claims.

The USD/CAD pair held on to its modest recovery gains and was now seen building on its momentum further beyond the 1.2600 handle.

Against the backdrop of a subdued price action around crude oil prices, which tends to derive demand for the commodity-linked currency - Loonie, a goodish pickup in the US Dollar demand helped the pair to stage a modest recovery from near 7-week lows touched in the previous session.

The up-move was further supported by today's disappointing Canadian New Housing Price Index (NHPI), which to some extent was offset by a slight miss from the US weekly jobless claims data and might now contribute towards keeping a lid on any meaningful up-move.

There isn't any market-moving data for the remainder of the day and hence, the USD/oil price dynamics might continue to act as key determinants of the pair's momentum through the NY trading session.

Technical levels to watch

Any subsequent up-move is likely to confront immediate resistance near the 1.2630 region (200-day SMA), above which a fresh bout of short-covering could lift the pair back towards 100-day SMA support-turned-resistance near the 1.2685-90 region.

On the flip side, weakness back below the 1.2600 handle now seems to find immediate support near the 1.2580 level, which if broken might turn the pair vulnerable to aim towards challenging the key 1.2500 psychological mark.