The USD/CAD pair gained some positive traction on Thursday and recovered a part of the previous day's losses to over one-week lows. Bulls, however, struggled to capitalize on the move beyond the 1.2600 mark, forcing the pair to trim a part of its intraday gains. Retreating US Treasury bond yields kept the US dollar bulls on the defensive. Apart from this, a modest pickup in crude oil prices underpinned the commodity-linked loonie and further collaborated towards capping the upside for the USD/CAD pair, at least for now.
Meanwhile, natural technical indicators on hourly/daily charts haven't been supportive of any firm direction. This makes it prudent to wait for a sustained breakthrough the mentioned points before determining the next leg of a directional move for the USD/CAD pair. Movement beyond the 1.2600 mark might confront some resistance near the 1.2625-30 region. This is closely followed by the weekly swing highs, around the 1.2645-50 region. Some follow-through buying might trigger a short-covering move and pave the way for additional gains.