USD/CAD flirting with lows, around 1.2860 support ahead of US ISM PMI

   •  Renewed trade war fears prompt some fresh USD selling and exerting pressure.
   •  Positive oil prices underpin Loonie and continue to drag lower.
   •  US ISM PMI eyed for trading impetus ahead of this week’s important releases.

The USD/CAD pair held on to its weaker tone through the early NA session and is currently placed at the lower end of its daily trading range. 

The pair struggled to build on Friday's modest recovery bounce and faced rejection at the 1.2900 handle amid some fresh US Dollar selling, triggered by renewed fears of a US-China trade war. 

This coupled with positive trading sentiment around crude oil prices provided an additional boost to the commodity-linked currency - Loonie and further collaborated to the pair's weaker tone at the start of a new trading week. 

The pair has now retreated back to the 1.2860 horizontal support area as traders now look forward to the release of US ISM manufacturing PMI, which along with this week's other major market-moving economic releases, including the keenly watched NFP, should help determine the pair's next leg of directional move. 

Technical levels to watch

A follow-through selling pressure has the potential to drag the pair back towards 1.2815-10 support area before the downfall gets extended further towards important moving averages confluence support near the 1.2710-1.2700 region. 

On the upside, any meaningful up-move might continue to confront strong resistance near the 1.2900 handle and is followed by the 1.2935-40 supply zone, which if cleared should assist the pair to make a fresh attempt towards reclaiming the key 1.30 psychological mark.