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USD/CAD Price Analysis: Gearing up for a move beyond ascending trend-channel hurdle

  • USD/CAD regains traction and recovers the overnight corrective slide.
  • The set-up now supports prospects for a near-term bullish breakout.

The USD/CAD pair caught some fresh bids near 50-day SMA on Wednesday and edged higher through the early North-American session, recovering a major part of the overnight modest pullback.

Bulls are now looking to extend the momentum beyond 100-day SMA and might aim towards challenging the top end of monthly ascending trend-channel, currently near the 1.3200-1.3210 region.

Meanwhile, technical indicators on the daily chart have been gaining positive traction and support prospects for a near-term bullish break through the trend-channel.

Some follow-through buying beyond the very important 200-day SMA, around the 1.3235 region, might be seen as a key trigger for bullish traders and set the stage for further near-term upside.

The pair then might aim towards testing the 1.3250-70 supply zone before eventually darting towards its next major hurdle near the 1.3300 round-figure mark, levels not seen since early December.

On the flip side, mid-1.3100s (50-day SMA) might continue to protect the immediate downside, which if broken is likely to accelerate the slide towards the 1.3130-25 support en-route the 1.3100 level.

USD/CAD daily chart

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