USD/CAD Price Analysis: Rebounds from weekly low, bulls look to seize control above 1.3400

• USD/CAD attracts some buyers near the 1.3360 area, or the weekly low touched on Wednesday.
• A modest pullback in crude oil prices undermines the Loonie and lends some support to the pair.
• A weaker risk tone benefits the USD’s safe-haven status and contributes to the intraday bounce.

The USD/CAD pair rebounds from the weekly low touched this Wednesday and climbs to a fresh daily high, which bulls now looking to build on the momentum beyond the 1.3400 mark.

Crude oil prices surrender a major part of the intraday gains to a one-week low, which, in turn, is seen undermining the commodity-linked Loonie. Apart from this, the prevalent risk-off mood benefits the US Dollar's relative safe-haven status and assists the USD/CAD pair to attract some buyers near the 1.3360 region.

From a technical perspective, any subsequent move up might continue to confront stiff resistance near the top end of over a two-month-old descending channel. The said hurdle is pegged near the 1.3455 area and is followed by the last week's swing high, around the 1.3475 zone, which should now act as a pivotal point.

A sustained strength beyond will be seen as a fresh trigger for bullish traders and set the stage for an extension of the recent recovery move from the lowest level since November 16. Some follow-through buying beyond the 50-day SMA will reaffirm the positive bias and push the USD/CAD pair beyond the 1.3500 psychological mark.

The momentum could get extended towards a technically significant 100-day SMA support breakpoint, now turned resistance near the 1.3530 region, above which bulls might aim to reclaim the 1.3600 mark.

On the flip side, the daily low, around the 1.3360 area, now becomes immediate support to defend ahead of the 1.3300 mark. A convincing break below will make the USD/CAD pair vulnerable to fall below the YTD low, around the 1.3265-1.3266 zone, and test the 1.3200 mark en route to the channel support, around the 1.3160-1.3155 zone.

USD/CAD daily chart

Key levels to watch