Bulls now await a move beyond weekly tops, around 1.3440 region

USD/CAD gains some positive traction despite the prevailing USD selling bias.
Weaker oil prices undermined the loonie and seemed to extend some support.
The technical set-up support prospects for a further near-term appreciating move.

The USD/CAD pair edged higher through the early North-American session and refreshed daily tops, around the 1.3430 region in the last hour, defying broad-based USD weakness.

Some renewed weakness in crude oil prices undermined the commodity-linked currency – the loonie – and turned out to be the only factor fueling the ongoing positive momentum.

Given that the recent pullback from nine-month tops has been finding some dip-buying near 200-hour SMA, the near-term technical set-up remains tilted in favour of bullish traders.

This coupled with the fact that technical indicators on hourly/daily charts have been moving higher in the positive territory further add credence to the pair’s constructive outlook.

However, it will be prudent to wait for some follow-through buying, possibly beyond weekly tops near the 1.3440 region, before positioning for any further near-term appreciating move.

Above the mentioned hurdle, the pair is likely to accelerate the move towards multi-month tops, around the 1.3465 area, before eventually darting to the key 1.3500 psychological mark.