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  • USD/CAD continues gaining traction and spikes to near one-week tops.
  • The set-up support prospects for an extension of the positive move.

The USD/CAD pair maintained its bid tone through the early North-American session on Tuesday and jumped to near one-week tops, around the 1.3275 region post-US/Canadian manufacturing data.

Given that the pair on Monday defended the very important 200-day SMA, a subsequent move beyond a three-day-old descending trend-channel was seen as a key trigger for bullish traders.

Meanwhile, technical indicators on the daily chart maintained their bullish bias and have again started gaining positive traction on the 4-hourly chart, further reinforcing the near-term constructive set-up.

Some follow-through buying beyond 200-hour SMA will reaffirm the bullish bias and should assist the pair to make a fresh attempt towards reclaiming the 1.3300 round-figure mark.

However, the fact that oscillators on the 1-hourly chart have moved on the verge of breaking into the oversold territory, bulls are likely to wait for some intraday consolidation.

On the flip side, the 1.3265 horizontal level now seems to protect the immediate downside, which if broken might drag the pair back toward challenging the 1.3220 region (200-DMA).

USD/CAD 1-hourly chart