With the markets undergoing the risk reset momentum, USDCAD fails to extend the previous day's recovery and stays below 10-day SMA. However, the quote's sustained trading beyond 200-day SMA and 61.8% Fibonacci retracement portrays the strength of underlying bullish momentum. As a result, traders will seek clues for either a break of 1.3280 or 1.3215 for fresh impulse.
Also favoring further consolidation is the past performance of Loonie that has stopped it to rise beyond 1.3330. Hence, the pair's upside beyond 1.3280 can take aim for 1.3330, a break of which could recall September 2019 high near 1.3380. However, a downside break of 1.3215 on a daily closing basis will trigger the pair's slump to 50% Fibonacci retracement surrounding 1.3165.