Dollah traders huddle up!

USD/CAD’s upswing is hitting a ceiling around a key technical resistance area.

Will the pair maintain its range pattern? Or will we see a breakout?

USD/CAD 4-hour Forex Chart by TradingView

In case you missed it, the U.S. dollar gained a number of pips against its counterparts as traders eased up on their Fed rate cut speculations after Friday’s U.S. NFP report and ahead of this week’s FOMC meeting minutes and U.S. CPI and PPI releases.

Meanwhile, the Canadian dollar has lost a number of pips to its shelter counterparts while traders worry about Middle East tensions and not-so-dovish Fed expectations.

Do not forget that directional biases and volatility conditions in market price are typically driven by fundamentals. Should you haven’t yet done your homework on the U.S. and Canadian dollars, then it’s time to ascertain out the economic calendar and stay updated on each day fundamental news!

USD/CAD, which has been trading in an uptrend since late September, is poppin’ up tall wicks across the 1.3650 level. Coincidentally, the psychological level lines up with a resistance from back in September and the R1 (1.3618) Pivot Point line within the 4-hour timeframe.

Can USD/CAD bears hold the fort on the range resistance area?

Be careful for more wicks and bearish candlesticks, which could attract selling pressure and begin a downswing that would take USD/CAD to its 1.3550 Pivot Point and mid-range levels.

If it seems that USD/CAD is just taking a breather, then the pair may very well be in for more gains. Keep a watch out for brand spanking new October highs and sustained trading above the 1.3650 area which opens up a possible move to the 1.3700 psychological handle or the 1.3750 previous area of interest.

Whichever bias you find yourself trading, don’t forget to practice proper risk management and stay aware of top-tier market catalysts when trading this one. Good luck!