USD/CAD extends its consolidative price action around mid-1.3100s

   •  A slump in crude oil prices helped limit the initial weakness.
   •  US data-led modest USD rebound provides a minor lift. 

The USD/CAD pair has managed to rebound around 20-pips from session lows and is currently placed near the top end of its daily trading range. 

The pair extended last week's rejection slide from levels just above the 1.3200 handle and touched an intraday low level of 1.3137 at the start of a new trading week. However, a sharp fall in oil prices, with WTI crude oil losing nearly 2.5% for the day, was seen weighing heavily on the commodity-linked currency - Loonie and helped limit further downside. 

Meanwhile, a follow-through US Dollar selling bias, which now seems to have eased following today's US economic releases, did little to provide any meaningful boost and eventually led to a range-bound/subdued price action through the mid-European session.  

According to the data released this Monday, US monthly retail sales recorded a 0.5% m/m growth in June and sales excluding automobiles increased by 0.4%. The positive surprise came in from an upward revision of last month's already stronger reading and was further supported by upbeat Empire State manufacturing index, albeit failed to revive the USD demand.

Currently trading around mid-1.3100s, it would be prudent to wait for a decisive breakthrough Monday's narrow trading range before positioning for the pair's next leg of directional move.

Technical levels to watch

Any subsequent up-move is likely to confront resistance near the 1.3180-85 zone and is followed by the 1.3200-1.3210 supply zone, above which the pair is likely to its next hurdle near the 1.3265-70 region.

On the flip side, weakness below 1.3140-35 area (session low) now seems to drag the pair towards 1.3100 handle en-route 50-day SMA support near the 1.3040 region.