USD/CAD Price Analysis: Clings to strong intraday gains, comfortably above mid-1.4100s
|- USD/CAD rebounds sharply from a support marked by 61.8% Fibo. level.
- The technical set-up support prospects for a move beyond the 1.4200 mark.
The USD/CAD pair stalled its recent sharp pullback from multi-year tops and managed to attract some buying near the 61.8% Fibonacci level of the 1.3518-1.4668 upsurge.
A sustained move back above 50% Fibo. level was seen as a key trigger for intraday bullish traders and continued boosting the pair through the early North-American session.
Meanwhile, oscillators on the daily chart maintained their bullish bias and have started gaining positive momentum on the 1-hourly chart, supporting prospects for additional gains.
Hence, some follow-through strength, towards reclaiming the 1.4200 round-figure mark, now looks a distinct possibility amid the ongoing downward spiral in crude oil prices.
This coupled with a goodish pickup in the US dollar demand has the potential to lift the pair further towards testing its next major hurdle near the 1.4225 region (38.2% Fibo.).
On the flip side, the 1.4100 round-figure mark (nearing 50% Fibo.) now seems to protect the immediate downside, which if broken might negate the pair's constructive outlook.
The pair then might accelerate the slide back towards challenging the key 1.40 psychological mark before eventually dropping to test the 1.3960-50 confluence region.
USD/CAD 4-hourly chart
Technical levels to watch
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