• The USD/CAD pair stalled this week’s goodish bounce from near one-month lows and once again failed to sustain/build on the momentum beyond the key 1.3500 psychological mark.
• The pair has now eroded a major part of its overnight up-move to weekly tops and also snapped two consecutive days of winning streak amid a modest USD pullback/positive Oil prices.
The intraday slide has now dragged the pair to 100-hour SMA important pivotal point, which if broken will be seen as a key trigger for intraday bearish traders and exert some additional downward pressure. Bearish technical indicators on the 1-hourly chart reinforce the negative outlook, albeit neutral oscillators on 4-hourly/daily charts warrant cautions before placing any aggressive positional trades.
Moreover, this week’s slide below the 1.3380 horizontal support eventually turned out to be a fake-out, further making it prudent to wait for a convincing break through the recent broader trading range before traders start positioning for the pair’s near-term trajectory either towards 100-day SMA, around the 1.3330 region, or towards reclaiming the 1.3600 round figure mark.
USD/CAD 1-hourly chart