USD/CAD Price Forecast: Bulls have the upper hand while above 100-period SMA on H4, near 1.3675

• USD/CAD attracts some buyers as bearish Oil prices undermine the Loonie.
• A modest USD weakness keeps a lid on any meaningful gains for spot prices.
• The technical setup backs the case for a further near-term appreciating move.

The USD/CAD pair builds on the previous day's bounce from the 1.3680-1.3675 area, or the weekly low, and gains some positive traction during the Asian session on Wednesday. Spot prices climb to a fresh daily high, around the 1.3730-1.3735 region in the last hour as bearish Crude Oil prices undermine the commodity-linked Loonie, through a softer US Dollar (USD) caps gain.

From a technical perspective, this week's retracement slide from the 1.3800 neighborhood, or the monthly top, stalled on Tuesday near the 100-period Simple Moving Average (SMA) on the 4-hour chart. The subsequent move up, along with the recent breakthrough a short-term descending trend-line resistance, favors bullish traders, though mixed oscillators on hourly and daily charts warrant some caution.

Hence, any further strength is likely to confront a stiff barrier near the 1.3775 region, or the 200-period SMA on the 4-hour chart. The latter is followed by the monthly high, around the 1.3800 mark, which if conquered would set the stage for a further near-term appreciating move and lift the USD/CAD pair to the 1.3835-1.3840 zone en route to the 1.3860 region (May 29 peak) and the 1.3900 round- figure mark.

On the flip side, the 1.3700 mark could offer immediate support ahead of the 1.3680-1.3675 region (100-period SMA on the 4-hour chart). A convincing break below the latter could drag the USD/CAD pair to the descending trend-line hurdle breakpoint, now turned support, currently around the 1.3615 area. Some follow-through selling below the 1.3600 mark would shift the near-term bias in favor of bears.

USD/CAD 4-hour chart