• The pair regained some positive traction at the start of a new trading week and built on Friday’s late rebound from 1-1/2 week lows, albeit faltered near 200-hour SMA.
• The mentioned resistance coincides with a short-term ascending trend-line support break-point and might now act as a key pivotal point for the pair’s near-term trajectory.
Meanwhile, neutral technical indicators on hourly/daily charts have also failed to support any firm intraday direction and hence, warrant some caution before placing any aggressive bets amid escalating US-China trade tensions.
A sustained move beyond the said hurdle, a bout of short-covering might assist the pair to make a fresh attempt towards conquering the key 1.3500 psychological mark before eventually darting to April swing highs, around the 1.3520 region.
On the flip side, a decisive break through the 1.3400 handle, leading to a subsequent weakness below the 1.3380-75 horizontal zone now seems to pave the way for a further near-term depreciating move towards challenging the 1.3300 round figure mark.
USD/CAD 1-hourly chart