USD/CAD eases from 9-month tops, still positive above 1.31 handle

   •  Strong USD demand/US bond yields supportive of the up-move.
   •  Weaker oil prices did little to support commodity-linked Loonie.
   •  Focus remains on the highly anticipated FOMC decision. 

The Canadian Dollar continued losing ground against its American counterpart, with the USD/CAD pair rising to near 9-month tops on Monday.

The pair built on last week's bullish break above the key 1.30 psychological mark and continued gaining some positive traction at the start of a new trading week. 

A follow-through US Dollar buying interest, further supported by a goodish pickup in the US Treasury bond yields was seen as one of the key factors behind the pair's up-move beyond the 1.3100 handle. 

Adding to this, a softer tone around crude oil prices was seen weighing on the commodity-linked currency - Loonie and further collaborated to the pair's momentum to its highest level since late June.

Bulls now seemed taking some breather, with the pair retreating around 15-pips from session tops as focus shifts to this week's key event risk - the highly anticipated FOMC meeting. Apart from a 25bps rate hike, already priced in the market, the accompanying economic projections/"dot plot" would drive the greenback in the near-term and eventually provide some fresh directional impetus. 

Technical levels to watch

Any subsequent retracement is likely to find support near the 1.3060-50 region, below which the profit-taking slide could further get extended towards the 1.30 handle en-route mid-1.2900s. On the upside, 1.3155-60 area is likely to act as an immediate resistance, which if cleared should pave the way for an extension of the pair's bullish trajectory towards reclaiming the 1.3200 handle.