Pair remains in up-and-down consolidative range
From a technical perspective, the USDCAD has been consolidating in an up-and-down trading range over the last 8 – 9 trading days. Most of the trading has occurred between 1.25865 at 1.26976. There were two extensions to the upside and one to the downside. All tried to move in the direction of the break, but ultimately moved back into the comfort zone (in the red box).
In between the highs and lows, sits the converged 100 and 200 hour moving averages which come in at 1.2656 area. If the price moves back above those levels on the decision, the buyers would take back more control, and target the 1.2693 to 1.26976 area.
With the price below the MA levels now, the sellers have the control edge. They would need to get the price below the 1.25865 to 1.25996 area (see lower yellow area). Move below – and stay below – should see further downside probing as traders look to exit the up and down trading range area seen over the last 9 days.
For now it is “wait for the break” mode for the pair.