USD/CAD consolidating after recent up-surge to 14-month tops

Having surged to 14-month highs, the USD/CAD pair seems to have entered a bullish consolidation phase and was seen oscillating in a narrow trading range around mid-1.3600s.

A subdued US Dollar price-action, against the backdrop of recent disappointment from the US macro data, has failed to provide any fresh bullish impetus. Adding to this, a sharp recovery for WTI crude oil prices, which tends to derive demand for the commodity-linked currency - Loonie, might further collaborated towards keeping a lid to the pair's up-move, just below the highest level since Feb. 2016 touched on Friday last week. 

Looking at the broader picture, today's range-bound price-action could still be categorized as consolidative phase following the recent up-surge over the past three-weeks. Moreover, possibilities of some profit-taking, especially after a strong appreciating of around 450-pips, might have also led to Tuesday's range-bound action, amid absent fresh fundamental drivers in-terms of any major market moving economic releases. 

Investors also seemed to await for this week's key event risks - FOMC meeting and the keenly watched monthly jobs report (NFP) from the US before placing fresh bullish bets. 

Technical levels to watch

Bulls would be eyeing for a follow through buying interest beyond the 1.3700 handle, above which the pair is likely to extend the upward trajectory further towards 1.3745-50 intermediate resistance ahead of 1.3785-90 and the 1.3800 round figure mark. 

On the downside, a follow through retracement below mid-1.3600s might prompt additional profit taking slide immediately towards 1.3620 support en-route the 1.3600 handle and 1.3575-70 previous resistance turned support.