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