USD/CAD Price Analysis: Refreshes session tops, bulls eyeing a move beyond 200-hour SMA

• USD/CAD gained traction for the second consecutive session on Thursday.
• The technical set-up warrants some caution before placing fresh bullish bets.

Having formed a strong base near 100-hour SMA, around the 1.3200 round-figure mark, the USD/CAD pair refreshed daily tops, around the 1.3245 region during the early North American session.

Some follow-through buying around the greenback was seen as a key factor that assisted the pair to build on the previous day's goodish bounce from multi-month lows, around the 1.3135 region. Bullish oscillators on hourly charts favour bullish traders. A sustained strength beyond 200-day SMA will reaffirm the bullish outlook and pave the way for a further appreciating move.

Meanwhile, technical indicators on the daily chart are yet to recover from the negative territory and warrant some caution before positioning for an extension of the recovery momentum. Looking at the broader picture, the pair has been trending lower along a downward sloping channel since early July, which points to a well-established near-term downtrend. 

Hence, any subsequent positive move might confront stiff resistance near the 1.3265-70 region, above which bulls are likely to aim back towards reclaiming the 1.3300 round-figure mark. The latter marks the top boundary of the mentioned channel and should now act as a key pivotal point for short-term traders.

USD/CAD 1-hourly chart

Technical levels to watch