USD/CAD Price Analysis: Jumps to fresh 1-week tops, bulls likely to aim 1.4160-70 supply zone

• USD/CAD turns positive for the fourth consecutive session on Thursday.
• The set-up supports prospects for a move back towards 1.4160-70 area.

The USD/CAD pair reversed an early dip to the 1.4070 region and turned positive for the fourth consecutive session, hitting fresh one-week tops in the last hour.

Looking at the technical picture, this week's recovery move from the 1.3900 mark has been along a short-term ascending trend-line, suggesting further appreciating move. This coupled with the fact that the pair is holding comfortably above important moving averages – 100 & 200-day SMAs – further add credence to the near-term positive outlook.

Meanwhile, oscillators on the daily chart – though have been losing traction – are still holding above the bearish territory and have been scaling higher on hourly charts. The set-up clearly seems tilted in favour of bullish traders and hence, a move back toward the 1.4160-70 supply zone, en-route the 1.4200 mark, now looks a distinct possibility.

On the flip side, the 1.4100 mark now seems to protect the immediate downside, below which the pair might slide towards the trend-channel support, currently near the 1.4055 region.

USD/CAD 4-hourly chart

Technical levels to watch