USD/CAD bulls eyeing to build on momentum beyond 1.29 handle

   •  A follow-through USD buying helps extend yesterday’s rebound from over 2-week lows.
   •  Weaker oil prices further weigh on commodity-linked Loonie and collaborate to the up-move.
   •  Sliding US bond yields fail to provide any additional boost but do little to cap gains.

The USD/CAD pair built on overnight rebound from over 2-week lows and might now be looking to extend the momentum further beyond the 1.2900 handle.

A goodish US Dollar rebound, supported by easing fears of a full-blown US-China trade war, once again assisted the pair to stage a solid rebound from the 1.2815-10 support area on Tuesday. 

A follow-through USD buying interest, despite a sharp retracement in the US Treasury bond yields, was seen as one of the key factors driving the pair higher, for the second consecutive session on Wednesday. 

This coupled with some selling pressure around crude oil prices was further seen denting demand for the commodity-linked currency - Loonie and collaborated to the pair's up-move back to the 1.2900 handle. 

It would now be interesting to see if bulls are able to maintain their dominant position as traders now look forward to the final US Q4 GDP growth figures for some fresh impetus. Later during the NY trading session, the weekly EIA report on US crude oil inventories would influence oil price dynamics and help traders to grab some short-term trading opportunities. 

Technical levels to watch

A follow-through up-move is likely to confront some fresh supply near the 1.2935-40 region, above which a fresh bout of short-covering could lift the pair back towards reclaiming the key 1.30 psychological mark. 

On the flip side, 1.2870-65 area now seems to protect the immediate downside, which if broken might prompt some fresh selling and drag the pair back towards the 1.2815-10 support area.