USD/CAD eases from tops, still well bid above 1.29 handle as focus shifts to BOC

   •  NAFTA/ global trade war fears continue to weigh on the Canadian Dollar.
   •  Softer oil prices further weigh on the commodity-linked Loonie.
   •  Traders await BOC monetary policy decision for fresh impetus.

The USD/CAD pair trimmed some of its early strong gains and has now retreated around 25-30 pips from session tops. 

The pair caught some fresh bids on Wednesday and recovered a major part of previous session's sharp rejection slide from the key 1.30 psychological mark, triggered by some renewed US Dollar selling. 

Meanwhile, Trump's top economic advisor, Gary Cohn's resignation on Tuesday revived global trade fears, which along with uncertainty over NAFTA negotiations was again seen weighing on the Canadian Dollar and helped the pair to regain some fresh bullish traction.

This coupled with a weaker tone around oil markets, with WTI crude oil holding with losses of around 1.0%, was also seen weighing on the commodity-linked - Loonie and further collaborated to the pair's goodish pickup. 

Traders, however, seemed reluctant to place aggressive bets and preferred to wait on the sidelines ahead of today's key event risk - BOC monetary policy decision. This along with this week's important monthly jobs report from the US and Canada would help investors determine the pair's next leg of directional move.

Technical levels to watch

From current levels, the 1.2900 handle now seems to attract some fresh buying interest and is followed by the 1.2870 strong horizontal support. On the upside, momentum beyond the 1.2960-65 region might continue to confront some fresh supply near the 1.30 handle, above which the pair seems all set to extend its recent bullish trajectory.