USD/CAD technical analysis: Jumps to fresh monthly tops, breaks through a key barrier near mid-1.3100s

• The USD/CAD pair built on its recent bounce from yearly lows and continued gaining positive traction for the third consecutive session on Tuesday.
• The positive momentum lifted the pair to fresh monthly tops, with bulls challenging a strong horizontal resistance near the 1.3145-50 region.
• The mentioned hurdle coincides with 23.6% Fibo. level of the 1.3565-1.3016 downfall and should now act as a key pivotal point for short-term bullish traders.

Given that technical indicators on the daily chart have just started gaining positive traction, the pair seems all set to break through the said barrier and accelerate the recovery move further towards reclaiming the 1.3200 handle.

A follow-through buying has the potential to provide an additional boost, albeit any subsequent positive move seems more likely to confront a stiff resistance and remained capped near the 1.3225 region - marking 38.2% Fibo. level. 

On the flip side, immediate support is now pegged near the 1.3130 horizontal level, below which the pair might slip back towards the 1.3100 handle. Failure to defend the mentioned support area will reinforce the strong barrier and prompt some aggressive selling, turning the pair vulnerable to head back towards challenging yearly lows.

USD/CAD 4-hourly chart