USD/CAD stuck in a range above 1.28, Canadian GDP eye for fresh impetus

   •  Remains confined in a narrow trading range above 1.28 handle.
   •  Candian GDP/Poloz, Wilkins testimony later on Tuesday.
   •  Focus remains on FOMC and NFP. 

The USD/CAD pair extended its consolidative price-action and remained confined within 20-25 pips narrow trading range, above the 1.2800 handle. 

The pair traded with a mild positive bias for the second consecutive session on Tuesday and was being supported by a modest pickup in the US Dollar demand. Adding to this, a subdued action around crude oil prices was also seen weighing a bit on the commodity-linked currency - Loonie and further collaborated to the pair's uptick through the early European session on Tuesday. 

   •  WTI flat-lined near $ 54 mark, awaits API inventory report

Bulls, however, seemed lacking strong conviction and the pair struggled to move past its immediate hurdle near mid-1.2800s as investors refrained from placing aggressive bets ahead of this week's key event risks. 

On the economic data front, the monthly Canadian GDP figures, along with the release of Raw Materials Price Index and the US economic data - Employment Cost Index, Chicago PMI and Conference Board's Consumer Confidence Index, would now be looked upon for some short-term trading impetus. 

Meanwhile, the key focus would be on the BOC Governor Stephen Poloz and Senior Deputy Governor Carolyn Wilkins' two-day testimony on Tuesday and Wednesday, which coupled with Wednesday's Fed decision and the keenly watched NFP report on Friday would help investors determine the pair's next leg of directional move. 

Technical levels to watch

On a sustained move beyond 1.2850-60 immediate resistance, the pair is likely to make a fresh attempt towards conquering the 1.2900 handle before eventually darting towards its next major hurdle near the 1.2930-35 region.

Conversely, retracement below the 1.2800 handle is likely to accelerate the corrective slide towards 1.2770 horizontal support en-route the 1.2700 mark and 1.2685-80 support area.