USD/CAD inches back closer to 1-month tops set on Friday

• The USD stood tall near two-month highs and helped the pair to regain traction.
• A modest pullback in Oil prices weighed on the Loonie and remained supportive.

The USD/CAD pair traded with a mild positive bias on the first day of a new week and remained well within the striking distance of one-month tops set on Friday.

The pair built on its recent recovery from yearly lows and got an additional boost on Friday following the release of stronger-than-expected US GDP report, showing that the economic growth stood at 2.1% annualized pace during the second quarter of 2019.

The positive momentum, however, faltered near the 1.3200 handle, though the pullback turned out to be short-lived, rather was quickly bought into at the start of a new trading week amid the prevalent bullish sentiment surrounding the US Dollar. 

This coupled with a modest pullback in Crude Oil prices further undermined demand for the commodity-linked currency - Loonie and remained supportive, with bulls now eyeing a sustained move beyond the 1.3200 round figure mark.

Given that the Fed is likely to refrain from announcing any aggressive monetary policy easing at its upcoming meeting on July 30-31, a convincing breakthrough the mentioned handle will set the stage for an extension of the recent appreciating move.

In the meantime, the USD/Oil price dynamics might continue to influence the pair's momentum amid absent relevant market-moving economic releases on Monday - either from the US or Canada.

Technical levels to watch