USD/CAD continues to find support near 50-DMA, back above mid-1.2800s

   •  A goodish pickup in the US bond yields helps revive USD buying interest. 
   •  Further gains are likely to be capped amid ongoing bullish run in oil prices.

The USD/CAD pair caught some fresh bids at the start of a new trading week and has now moved back above mid-1.2800s.

The pair stalled Friday's mixed NFP-led retracement slide from one-month tops and once again managed to attract some fresh buying near the 50-day SMA immediate support. 

The latest leg of up-move could further be attributed to some renewed US Dollar buying interest, supported by a goodish pickup in the US Treasury bond yields. 

Further gains, however, are likely to remain capped amid the ongoing bullish run in crude oil prices, which tends to underpin demand for the commodity-linked currency - Loonie. 

Even looking at the broader picture, the pair has been struggling to build/sustain its up-move beyond the 1.2900 handle and remains within a two-week-old broader trading band. Hence, it would be prudent to wait for a decisive break through the range before positioning for the pair's next leg of directional move. 

In absence of any major market moving economic releases, either from the US or from Canada, the USD/oil price-dynamics might continue to act as key determinants of the pair's momentum. 

Moving ahead, investors this week will confront the release of latest US inflation figures, which might be looked upon for the required momentum to assist the pair to move out of its recent trading range. 

Technical levels to watch

Any subsequent up-move might continue to confront fresh supply near the 1.2900 handle, above which the pair is likely to aim towards challenging its next hurdle near the 1.2940-45 region. On the flip side, 50-day SMA, currently near the 1.2835-30 region, might continue to protect the immediate downside, which if broken might accelerate the slide further towards the 1.2800 handle.