USD/CAD up little around mid-1.2400s, BOC awaited

   •  Goodish USD rebound helps gains some positive traction.
   •  Bulls seemed lacking conviction ahead of BOC decision.

The USD/CAD pair gained some positive traction on Wednesday, albeit seemed lacking strong follow-through momentum beyond the 1.2450-60 region.

The pair continues to find decent support around the 1.2400 handle and reviving greenback demand provided an additional boost on Wednesday. In fact, the key US Dollar Index staged a solid rebound from 3-year lows and has been one of the key factors driving the pair higher through the early European session.

Meanwhile, a subdued action around oil markets, with WTI crude oil holding stable below the $64.00/barrel mark, did little to lend any support to the commodity-linked Loonie and remained supportive of the pair's modest uptick.

It, however, remains to be seen if the pair is able to build on the up-move or runs through some fresh offers as traders start repositioning themselves for today's key event risk - BOC monetary policy decision, due to be announced later today. 

The Canadian central bank is universally expected to hike interest rates by 25-bps points and hence, the accompanying policy statement, and subsequent press conference might determine the pair's next leg of directional move.

Technical levels to watch

A sustained move beyond 1.2460 level is likely to trigger a short-covering bounce towards reclaiming the key 1.2500 psychological mark en-route 1.2545 horizontal resistance and 100-day SMA barrier near the 1.2585-90 region.

On the flip side, the 1.2400 handle might continue to act as immediate support, which if broken decisively is likely to accelerate the fall back towards 1.2355 level before the pair eventually drops to 1.2300-1.2290 strong horizontal support.