USD/CAD Price Analysis: Hits multi-week tops, bulls eyeing a move beyond 1.3700 mark
- USD/CAD gains some traction and jumps to multi-week tops in the last hour.
- The set-up supports prospects for an extension of the positive momentum.
- Any dips towards the 1.3600 mark might be seen as a buying opportunity.
The USD/CAD pair finally broke out of its daily consolidative trading range and spiked to multi-week tops, around the 1.3700 mark during the early North American session.
Given this week's rebound from the very important 200-day SMA – levels below the 1.3500 psychological mark – and a subsequent break through a short-term descending trend-line resistance, the set-up remains tilted in favour of bullish traders.
Moreover, the pair also seems to have found acceptance above the 23.6% Fibonacci level of the 1.4668-1.3315 downfall. This, coupled with bullish technical indicators on hourly charts further add credence to the near-term constructive outlook.
However, oscillators on the daily chart – though have recovered from the negative territory – are yet to confirm the positive bias. Hence, it will be prudent to wait for some follow-through buying before positioning for any further near-term appreciating.
Nevertheless, the pair still seems poised to surpass the 1.3700 mark and aim towards testing the 1.3740 horizontal resistance. The momentum could further get extended beyond the 1.3800 level, towards testing 38.2% Fibo. level around the 1.3820 area.
On the flip side, the 1.3630-25 region (23.6% Fibo. level) now seems to protect the immediate downside. Any subsequent slide might still be seen as a buying opportunity near the 1.3600 mark and remain limited near the trend-line resistance breakpoint.
USD/CAD 4-hourly chart
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Technical levels to watch
Author
Haresh Menghani
FXStreet
Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.
