USD/CAD Technical Analysis: Bears back in action amid surging oil prices, now targeting 1.3500 mark

   “¢   Having failed to make it through the 1.3660 region, the pair witnessed a sudden turnaround and tumbled to over one-week lows in the last hour.

   “¢   A sharp short-covering rally in crude oil prices underpinned Loonie and turned out to be one of the key factors prompting aggressive long-unwinding.

   “¢   In the process, the pair confirmed a bearish breakthrough 200-hour SMA and a rectangular chart pattern – the post-Christmas consolidation phase.

   “¢   Meanwhile, technical indicators on the 1-hourly chart are already pointing to slightly oversold conditions and might limit further losses, at least for now.

   “¢   However, oscillators on the 4-hourly chart have just started gaining negative momentum and also losing traction on the daily chart, pointing to bearish set-up.

   “¢   Hence, any attempted bounce is likely to get sold into and a subsequent fall, towards the key 1.3500 psychological mark, now looks a distinct possibility.

USD/CAD 1-hourly chart