The USD/CAD currency pair continues to enjoy strong support around the key 50% Fib level after the recent pullback pushed the pair towards the 1.3300 level. Since then the greenback has retaliated against the loonie to drive the pair marginally higher at around 1.3328, which maintains the current short-term bullish bias.

USD/CAD Fundamentals Overview

From a fundamental perspective, the loonie continues to be boosted by the strengthening oil prices, which today hit new yearly highs. Crude Oil was up to $62.88 while Brent Crude surged to $69.91 per barrel.

On the other hand, the greenback leaned on the strong US economic data released earlier on Wednesday with the Markit PMI Composite slightly beating expectations at 54.6 points versus 54.3. Looking forward to Thursday, traders will be keeping an eye on the US Continuous and Initial Jobless claims data scheduled at around 12:30 GMT while in Canada, the Ivy Purchasing Managers Index data will be out at 14:00 GMT.

USD/CAD Technical Analysis (the 240-min Chart)

Technically, the USD/CAD currency pair appears to be trading within an ascending wedge, which could end up forming a triangle for a potential trend reversal. The pair recently bounced off the 50% Fib level and now seems headed towards 38.20% level, which could trigger a short-term pullback.

As such, the bulls will target opportunities at around the 1.3341 level (38.20% Fib level) while the bears will look down below at the 50% fib level (1.3300 key support level) for profits in the short-term.

USD/CAD Technical Analysis (the Daily Chart)

In the daily chart, the pair appears to be trading within an ascending channel, which when merged with the picture painted in the 240-minute chart suggests a potential case of short-term consolidation with a bullish bias.

This creates multiple opportunities for both the bulls and the bears. The USD/CAD currency pair could also be pulled back between the 100-day and 200-day moving averages, which could keep it pegged within a tight trading range in the intermediate time frame.

In summary, the USD/CAD currency pair is currently involved in a fundamental tag-of-war between a recent spike in oil prices and a strong US economic data. But technically, the bulls remain in control although the bears could have there shout soon.