- USD/CAD climbs to the top end of the recent trading range.
- The technical set-up support prospects for further decline.
The USD/CAD pair held on to its mildly positive tone through the early North-American session and is currently placed at daily tops, near the key 1.30 psychological mark.
The mentioned region coincides with the top end of the pair’s near one-week-old trading range and should act as a key pivotal point for the pair’s next leg of a directional move.
The recent range-bound price action constituted towards the formation of a rectangle on hourly charts, which is seen as a continuation pattern – bearish in the case of USD/CAD.
The set-up remains tilted in favour of bearish traders. However, slightly oversold conditions on the daily chart seemed to be the only factor prompting some short-covering move.
Hence, it will be prudent to wait for a sustained break below the trading range support, near the 1.2960 region, before positioning for a slide towards challenging the 1.2900 handle.
Alternatively, a sustained move beyond the mentioned barrier might trigger some follow-through short-covering and has the potential to lift the pair towards the 1.3050 supply zone.
USD/CAD 1-hourly chart
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