USD/CAD technical analysis: Pullbacks might still be seen as a buying opportunity

• Positive Oil prices underpinned the Loonie and capped the upside.
• Technical set-up support prospects for a meaningful dip-buying.

The USD/CAD pair gained some follow-through traction and climbed to one-month tops, around the 1.3255 region during the mid-European session on Tuesday, albeit retreated few pips thereafter.
 
Last week’s sustained breakthrough 100-day SMA barrier near the 1.3200 handle was seen as a key trigger for bullish traders and remained supportive of the move but lacked any strong conviction.
 
The prevalent positive mood around oil prices underpinned demand for the commodity-linked currency – Loonie and turned out to be one of the key factors keeping a lid on any subsequent strength.
 
Meanwhile, technical indicators on the daily chart have just started gaining positive traction and maintained their bullish bias on the 4-hourly chart, supporting prospects for some dip-buying.
 
Hence, any meaningful pullback might still be seen as an opportunity to initiate some fresh bullish positions and help limit the downside near 100-day SMA, around the 1.3200 round-figure mark.
 
On the upside, the very important 200-day SMA, near the 1.3280 region, now seems to act as an immediate resistance, above which the pair is likely to aim towards the 1.3330-35 supply zone.

USD/CAD daily chart