USD/CAD Talking Points:
- USD/CAD[1] has been range-bound for a month now, with price action building into a box between resistance at 1.3500 and support coming from a few key confluent Fibonacci levels.
- Are breakouts nearing in USD/CAD?[2] Yesterday saw a fast and buyers have continued to push ever since, exposing the resistance side of the recent range.
- DailyFX Forecasts are published on a variety of currencies such as the Canadian Dollar[3]and are available from the DailyFX Trading Guides page[4]. If you’re looking to improve your trading approach, check out Traits of Successful Traders[5]. And if you’re looking for an introductory primer to the Forex market, check out our New to FX Guide[6].
Do you want to see how retail traders are currently trading USD/CAD? Check out our IG Client Sentiment Indicator[7].
USD/CAD Reversal Rally Inside of Month-long Range
The Canadian Dollar[8] started the year with a strong rush of strength as USD/CAD fell by more than 500 pips in the month of January. Since then, however, it’s largely been continued weakness in the Canadian Dollar as USD/CAD has pushed back up to the 1.3500 handle. To be sure, there have been instances of congestion along-the-way. From early-March into late-April, the pair put in both lower-highs and higher-lows and then from late-April into current price action[9], a horizontal range has built-in between two key areas on the chart. At resistance, the 1.3500 psychological level has helped to temper the highs over the past month while support
