- USD/CAD remains confined well within a one-week-old trading range.
- Bulls are likely to wait for a move beyond a descending trend-line hurdle.
The USD/CAD pair has been pivoting around the very important 200-day SMA, well within 70-75 pips broader trading range over the past one week or so.
Given the recent rally of around 250 pips from late-October swing low, the range-bound price action might still be categorized as a bullish consolidation phase.
Meanwhile, oscillators on the daily chart, though have struggled to gain strong traction, maintained their bullish bias and support prospects for further gains.
However, it will be prudent to wait for a sustained break through a near six-month-old descending trend-line before placing any aggressive bullish bets.
Sustained strength above the mentioned barrier now seems to set the stage for a move towards October monthly swing highs, around mid-1.3300s.
The momentum could further get extended towards the 1.3380-85 intermediate resistance, above which the pair is likely to aim towards the 1.3400 handle.
On the flip side, any meaningful pullback might continue to show some resilience below the 200-DMA and attract some dip-buying near the 1.3260 region.
Failure to defend the said support might negate the positive bias and prompt some technical selling, turning the pair vulnerable to slide towards the 1.3200 mark.
USD/CAD daily chart
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