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  • The USD/CAD pair struggled to capitalize on its early uptick and is currently placed near the lower end of its daily trading range.  
  • Despite the pullback, the pair has managed to hold its neck above the 1.3145-50 resistance breakpoint now turned support.

The mentioned region coincides with 100-hour SMA and 23.6% Fibo. level of the 1.3565-1.3016 recent downfall, which should now act as a key pivotal point for the pair’s intraday momentum amid absent relevant market moving economic releases.  

Meanwhile, technical indicators on the 1-hourly chart have again started gaining negative momentum but have managed to hold in the positive territory on 4-hourly/daily charts, warrant some caution before placing any aggressive bearish bets.

However, a decisive breakthrough the said confluence support might turn the pair vulnerable to accelerate the slide further towards the 1.3120-15 intermediate support en-route the 1.3100 round figure mark.  

A follow-through weakness below the 1.3100 handle will suggest that the near-term corrective bounce from yearly lows is already over and set the stage for a further downfall back towards testing the 1.3050-40 horizontal support.

On the flip side, bulls are likely to wait for a sustained strength beyond the 1.3200 handle, above which the pair is likely to aim towards testing 100-day SMA, around mid-1.3200s en-route the very important 200-day SMA – around the 1.3295-1.3300 region.

USD/CAD 1-hourly chart