USD/CAD Technical Analysis: Bulls gearing up for a move towards reclaiming 1.3300 handle

USD/CAD consolidates Friday’s strong positive move of nearly 100 pips.
The set-up favours bulls and supports prospects for additional gains.

Haresh Menghani FXStreet

The USD/CAD pair extended its sideways consolidative price action through the mid-European session on Monday and remains confined in a narrow trading band near the 200-hour SMA.

The mentioned region, around the 1.3250-60 region, coincides with the 61.8% Fibonacci level of the 1.3323-1.3159 recent downfall and should act as a key pivotal point for intraday traders.

Following Friday’s upsurge of nearly 100 pips, slightly overbought conditions on the 1-hourly chart seemed to be the only factor holding investors from placing any fresh bullish bets.

Meanwhile, oscillators on 4-hourly/daily charts have managed to hold in the bullish territory and support prospects for additional gains amid a weaker tone surrounding oil prices.

Hence, some follow-through appreciating move, back towards challenging a six-month-old descending trend-line resistance near the 1.3300 handle, still looks a distinct possibility.

On the flip side, any meaningful pullback below 50% Fibo. level might attract some dip-buying near the 1.3220 region (38.2% Fibo.) and help limit the downside near the 1.3200 handle.

USD/CAD 1-hourly chart

USD/CAD

Overview
Today last price	1.3261
Today Daily Change	0.0002
Today Daily Change %	0.02
Today daily open	1.3259

Trends
Daily SMA20	1.326
Daily SMA50	1.3217
Daily SMA100	1.323
Daily SMA200	1.328

Levels
Previous Daily High	1.3272
Previous Daily Low	1.317
Previous Weekly High	1.3322
Previous Weekly Low	1.3158
Previous Monthly High	1.3328
Previous Monthly Low	1.3114
Daily Fibonacci 38.2%	1.3233
Daily Fibonacci 61.8%	1.3209
Daily Pivot Point S1	1.3196
Daily Pivot Point S2	1.3133
Daily Pivot Point S3	1.3095
Daily Pivot Point R1	1.3297
Daily Pivot Point R2	1.3335
Daily Pivot Point R3	1.3398

Author

Haresh Menghani

FXStreet

Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.

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