USD/CAD Price Analysis: Refreshes weekly tops, retakes 1.3200 mark

• USD/CAD gained traction for the third consecutive session on Thursday.
• Mixed technical indicators warrant caution before placing fresh bullish bets.
• Sustained weakness below the 1.3170 support will negate any positive bias.

The USD/CAD pair built on its recent bounce from the 1.3100 mark, or over one-month lows and gained traction for the third consecutive session on Thursday. The strong intraday positive momentum pushed the pair to fresh weekly tops, with bulls now looking to build on the strength beyond the 1.3200 mark.

The mentioned level is closely followed by the 1.3215-20 confluence resistance, comprising of 200-period SMA on the 4-hourly chart and the 38.2% Fibonacci level of the 1.3421-1.3099 recent slide. A convincing breakthrough will be seen as a fresh trigger for bulls and pave the way for further gains.

Meanwhile, technical indicators on the 4-hourly chart have been gaining traction and support prospects for an extension of the upward trajectory. However, oscillators on the daily chart are yet to confirm a bullish bias and are already moved into the overbought territory on the 1-hourly chart. This, in turn, warrants some caution before positioning for any further near-term appreciating move.

That said, some follow-through buying beyond the 1.3215-20 hurdle has the potential to lift the USD/CAD pair further towards the 1.3255-60 horizontal resistance. The momentum could further get extended and assist the pair to aim back to reclaim the 1.3300 round-figure mark.

On the flip side, any meaningful pullback might now be seen as a buying opportunity and remain limited near the 23.6% Fibo. level, around the 1.3170 region. Failure to defend the mentioned support will negate any near-term bullish bias and turn the pair vulnerable to accelerate the slide back towards the 1.3100 round-figure mark.

USD/CAD 4-hourly chart

Technical levels to watch