USD/CAD technical analysis: Bulls gearing up for a move towards reclaiming 1.3200 handle

• The USD/CAD pair managed to attract some dip-buying interest near a previous resistance breakpoint – around the 1.3150-40 area and edged higher on Tuesday.
• The mentioned region coincides with 100-hour EMA and might continue to act as a key pivotal point for short-term traders ahead of the FOMC policy decision.

Given that the pair has managed to clear a short-term descending trend-line resistance, bullish technical indicators on hourly charts support prospects for a fresh bullish attempt towards reclaiming the 1.3200 round figure mark.

Meanwhile, oscillators on the daily chart have just started gaining positive traction and hence, a follow-through buying has the potential to provide an additional boost and lift the pair further towards 50-day SMA – around the 1.3235-40 region.

However, the occurrence of a death-cross on the daily chart – wherein 50-day SMA has already crossed below the very important 200-day SMA, might turn out to be the only factor that might keep a lid on any runaway rally for the pair.

Hence, it will be prudent to wait for a strong follow-through buying before confirming that the pair might have already bottomed out in the near-term and positioning for any further near-term appreciating move, possibly beyond the 1.3300 handle.

USD/CAD 1-hourly chart