USD/CAD Price Analysis: Seems poised to build on the overnight strong move up

• USD/CAD extended its sideways consolidative price action through the early NA session.
• The near-term technical set-up supports prospects for an extension of the positive move.

The USD/CAD pair consolidated the previous day’s strong move of over 250 pips and remained confined in a trading range around the 1.4100 mark, or just below 1-1/2 week tops set earlier today.

The overnight upsurge assisted the pair to finally break through a near one-month-old descending trend-line resistance and move beyond the 23.6% Fibonacci level of the 1.4668-1.3856 downfall.

Bullish oscillators on hourly/daily charts add credence to the constructive set-up and support prospects for a further near-term appreciating move amid sustained buying interest around the USD.

However, a modest pickup in crude oil prices, which tend to underpin demand for the commodity-linked currency – the loonie – and kept a lid on any subsequent positive move, at least for now.

In the meantime, immediate resistance is pegged near the 1.4140 region, above which the pair is likely to aim towards 38.2% Fibo., around the 1.4175 area, en-route the 1.4200 round-figure mark.

On the flip side, the 23.6% Fibo. level, around mid-1.4000s, now seems to act as immediate support, which if broken might turn the pair vulnerable to slide back below the key 1.40 psychological mark.

USD/CAD 4-hourly chart

Technical levels to watch