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  • The USD/CAD pair on Tuesday showed some resilience below 200-period EMA on the 4-hourly chart and staged a goodish intraday recovery of around 75-pips.
  • The pair gained positive traction for the second consecutive session on Wednesday and held above the 1.3300 handle through the early North-American session.

The overnight slump below a two-week-old trading range turnaround to be a false breakdown and the subsequent price action support prospects for a further near-term appreciating move, albeit positive Oil prices seemed to cap the upside.
Meanwhile, technical indicators on the daily chart maintained their bullish bias and have been gaining positive momentum on hourly charts, further reinforcing the near-term bullish outlook amid a modest pickup in the US Dollar demand.
Traders, however, are likely to wait for a sustained breakthrough the 1.3345 strong resistance – monthly tops set last week – before positioning for a possible move towards reclaiming the 1.3400 handle en-route the 1.3425-30 supply zone.
On the flip side, any weakness back below the 1.3300 handle now seems to find some support near the 1.3280 horizontal zone, which if broken might accelerate the slide back towards the recent trading range support near mid-1.3200s.

USD/CAD 4-hourly chart