- The USD/CAD pair continued gaining positive traction for the sixth consecutive session on Friday and climbed to one-month tops in the last hour.
- Given that the pair has managed to find acceptance above the 1.3145-50 supply zone, the set-up might have already turned in favour of bullish traders.
The mentioned resistance breakpoint coincided with 23.6% Fibonacci retracement level of the 1.3566-1.3016 downfall and should now act as a key pivotal point for short-term traders. Meanwhile, oscillators on the daily chart have just started gaining positive traction and support prospects for an extension of the recent recovery move from yearly lows set last Friday.
The pair now seems all set to aim towards reclaiming the 1.3200 round figure mark, above which the momentum could further get extended towards testing the 1.3230-40 confluence barrier. However, oscillators on hourly charts have moved on the verge of breaking into the overbought territory and thus, warrant cautions before placing any aggressive bets ahead of the US GDP report.
Moreover, the occurrence of a death-cross on the daily chart – wherein 50-day SMA has already crossed below the very important 200-day SMA, might further collaborate towards capping strong gains. Hence, any further up-move seems more likely to meet with some fresh supply, rather remain capped near the mentioned confluence resistance – comprising of 50-day SMA and 38.2% Fibo. level.
USD/CAD daily chart
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