• The USD/CAD pair quickly reversed a mid-European session dip to mid-1.3400s and refreshed session tops in the last hour, albeit lacked any strong follow-through.
• The intraday downtick stalled ahead of 200-hour EMA, which should now act as a key pivotal point for short-term traders amid a combination of diverging forces.
• Some renewed US Dollar buying interest, to a larger extent, was offset by a goodish pickup in Oil prices and failed to provide any meaningful impetus to the major.
Meanwhile, technical indicators on hourly charts have again started gaining positive traction and maintained their bullish bias on the daily chart, supporting prospects for an eventual move beyond the key 1.3500 psychological mark.
The mentioned handle has been acting as a strong barrier over the past two weeks or so and hence, a sustained breakthrough would mark a near-term bullish breakout, paving the way for a further near-term appreciating move.
Beyond the said hurdle, the pair is likely to surpass April swing highs, around the 1.3520 region, and aim towards testing the 1.3565-70 supply zone before eventually darting towards reclaiming the 1.3600 round figure mark.
On the flip side, any meaningful pullbacks might continue to find some support ahead of the 1.3400 handle, which if broken might accelerate the slide further towards the recent trading range support near the 1.3380-75 region.
USD/CAD 1-hourly chart
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