- The positive momentum falters near 5-1/2 month-old descending trend-line resistance.
- The pair quickly retreats back below the 1.3300 handle but hold above the 200-day SMA.
The USD/CAD pair maintained its strong bid tone through the early North-American session, albeit retreated few pips from multi-week tops on mostly in line Canadian CPI.
A sustained move beyond the very important 200-day SMA was seen as a key trigger for bullish traders and assisted the pair to build on the previous session’s strong upsurge.
The pair, however, struggled to make it through a 5-1/2 month-old descending trend-line resistance, which should now act as a key pivotal point for short-term traders.
Meanwhile, technical indicators on the daily chart held well within the bullish territory and further reinforce the constructive outlook, though recovering oil prices might cap gains.
Moreover, oscillators on hourly charts are already flashing slightly overbought conditions and also warrant some caution ahead of the release of the latest FOMC meeting minutes.
Hence, it will be prudent to wait for a strong follow-through buying beyond the mentioned barrier before positioning for any further near-term appreciating move towards mid-1.3300s.
USD/CAD daily chart
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