USD/CAD stuck in a range below 1.2800 handle

   •  Struggles to build on Friday’s rebound from 3-week tops.
   •  Weaker oil prices offset by retracing USD/US bond yields.
   •  Empty economic docket unlikely to provide any impetus.

The USD/CAD pair struggled to build on Friday's goodish rebound and was now seen oscillating in a narrow trading range, below the 1.2800 handle.

The pair on Friday rallied around 70-pips from an intraday low level of 1.2730 following the latest disappointing Canadian monthly jobs data, coming in to show an unexpected fall of 1.1K in the number of employed people during April as compared to a rise of 17.4K rise anticipated. 

The up-move, however, lacked any strong follow-through at the start of a new trading week and was being capped by the ongoing corrective slide witnessed around the US Dollar, further  aggravated by sliding US Treasury bond yields.

Even a modest retracement in crude oil prices, which tends to undermine demand for the commodity-linked currency - Loonie, also failed to provide any bullish impetus and assist the pair to build on Friday's recovery move from 3-week lows. 

In absence of any major market-moving economic releases on Friday, it would be prudent to wait for a decisive break through the 1.2800 mark before traders start repositioning for any further near-term recovery move for the major. 

Technical levels to watch

A sustained move beyond the mentioned hurdle is likely to accelerate the recovery back towards 50-day SMA hurdle, currently near the 1.2830 region before the pair eventually attempts to head back towards reclaiming the 1.2900 handle. 

On the flip side, a follow-through weakness back below mid-1.2700s now seems to turn the pair vulnerable to test 100-day SMA, sub-1.2700 level, en-route the very important 200-day SMA support near the 1.2645 region.