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USD/CAD Price Analysis: Traders await a sustained break through two-day old trading range

  • USD/CAD held steady above the 1.3400 mark, albeit lacked follow-through.
  • The technical set-up continues to support prospects for further gains.

The USD/CAD pair extended its sideways consolidative price action and was last seen trading just above the 1.3400 mark, near the top end of a two-day-old trading range.

Given that the pair has been attracting some dip-buying near 200-hour SMA and has held above the 1.3385-90 support, the set-up remains tilted in favour of bullish traders.

Meanwhile, technical indicators on hourly charts have just managed to hold in the positive territory and further support prospects for a further near-term appreciating move.

However, it will be prudent to wait for some follow-through buying beyond the 1.3430-40 supply zone, above which the pair is likely to aim towards the key 1.3500 psychological mark.

On the flip side, the 1.3380 region might continue to protect the immediate downside and is closely followed by the 200-hour SMA support near the 1.3360-50 region.

Failure to defend the mentioned support levels might turn the pair vulnerable to accelerate the slide back towards challenging the 1.3300 mark amid sustained USD weakness.

USD/CAD 1-hourly chart

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Technical levels to watch

 

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