USD/CAD building on Tuesday’s rebound, jumps to session high at 1.3150

The USD/CAD pair's sharp rebound from 1.3000 psychological mark touched on Tuesday gained further traction during early European trading session, lifting the pair to 1.3150 neighborhood. 

Maintaining its high degree of correlation with crude oil prices, the Canadian Dollar has failed to benefit from a broadly weaker US Dollar and was evident from Tuesday's swift recovery from 1.3000 handle to move back above 200-day SMA.

Adding to this, a recovery in the greenback, as measured by the US Dollar index, helped the USD/CAD pair to build on to its move above 200-day SMA. 

Moving ahead, while the pair might continue to take cues from a broader sentiment surrounding crude oil prices, investors will scrutinize today's US release of ADP report on private sector employment and ISM non-manufacturing PMI that would assist them to evaluate the possibilities of an eventual Fed rate-hike decision in 2016.

Technical levels to watch

Bullish momentum above 1.3150 is likely to get extended immediately towards 1.3186 (July 29 high), above which the pair seems all set to reclaim 1.3200 handle and head towards testing July swing high resistance near 1.3250 region.

On the flip side, 200-day SMA near 1.3080 region becomes immediate support to watch for, which if broken seems to drag the pair immediately towards 1.3035 intermediate support ahead of the very important 1.3000 psychological mark strong support.