The USD/CAD pair prolonged its recent bullish trend witnessed over the past one week or so and gained strong follow-through traction for the fourth successive day on Tuesday. The momentum pushed the pair to a new 2022 high, around the 1.2900 round figure and seemed unaffected by bullish crude oil prices, which tend to benefit the commodity-linked loonie. As investors assessed the impact of a worsening conflict in Ukraine, a new US ban on Russian oil and other energy imports pushed the black liquid to its highest level since 2008.

From a technical perspective, the overnight move beyond the February peak, around the 1.2875-1.2880 region, could be seen as a fresh trigger for bullish traders. Some follow-through buying beyond the 1.2900 mark will reaffirm the constructive outlook and pave the way for a further near-term appreciating move. With technical indicators on the daily chart holding in the positive territory, the pair seems poised to accelerate the momentum to challenge the 2021 high, around the 1.2960-1.2965 region touched in December. Bulls might eventually aim to reclaim the key 1.3000 psychological mark for the first time since December 2020.

On the flip side, any meaningful corrective slide now seems to find decent support near the 1.2815-1.2810 region. This is closely followed by the 1.2800 mark, which if broken might prompt some long-unwinding. That said, any subsequent decline could be seen as a buying opportunity and remain limited near the 1.2775-1.2765 strong horizontal resistance breakpoint, now turned support. The latter should act as a strong near-term base for the pair and a pivotal point for traders.

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