- 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
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