USD/CAD struggles to gain traction, holds weaker below 1.25 handle

   •  Renewed USD selling bias prompts some fresh selling.
   •  Subdued oil prices help limit deeper losses. 
   •  Traders eye Canadian manufacturing sales data for some impetus. 

The USD/CAD pair came under some renewed selling pressure on Monday and has now eroded around 50% of Friday's strong rebound. 

The pair continues to face difficulty in moving back above the key 1.25 psychological mark and was now being weighed down by a fresh wave of US Dollar selling bias. The US government shutdown now seems to have negated a follow-through uptick in the US Treasury bond yields and continued taking a toll out of the greenback.

Meanwhile, a subdued action around crude oil prices, which tends to influence demand for the commodity-linked currency - Loonie, did little to lend any support and the prevailing bearish sentiment surrounding the buck is turning out to be an exclusive driver of the pair's softer tone at the start of a new trading week. 

Next on tap would be the release of Canadian manufacturing sales data, which might provide some short-term trading impetus amid empty US economic docket. 

Technical levels to watch

Immediate support is pegged near 1.2430 level, below which the pair is likely to accelerate the fall back towards the 1.2400 handle before eventually dropping to test the 1.2360-55 strong support.

On the upside, the 1.2500 handle might continue to act as an immediate strong hurdle, which if cleared might trigger a short-covering rally towards 1.2545 horizontal resistance en-route 100-day SMA barrier near the 1.2585 region.