USD/CAD Technical Analysis: Bullish consolidation below 1.3200 mark

Haresh Menghani FXStreet

• The pair remains confined in a narrow trading range below the 1.3200 handle, forming a rectangular chart pattern on the 1-hourly chart.

• Given that the pair has already broken through a two-month-old descending trend-channel, the formation could be seen as a pause in the bullish trend.

• Investors, however, seemed reluctant to place any bets and preferred to wait for any fresh update over the progress in talks to revise NAFTA.

• Mixed technical indicators on hourly/daily charts have also failed to support any firm directional bias.

• Hence, it would be prudent to wait for a decisive move in either direction before positioning for the near-term trajectory.

USD/CAD 1-hourly chart

Spot Rate: 1.3179
Daily Low: 1.3164
Daily High: 1.3200
Trend: Sideways/consolidative

Resistance
R1: 1.3206 (1-1/2 month top set yesterday)
R2: 1.3232 (R2 daily pivot-point)
R3: 1.3267 (July daily closing high)

Support
S1: 1.3155 (overnight swing low)
S2: 1.3127 (100-period SMA H1)
S3: 1.3103 (S3 daily pivot-point)

Author

Haresh Menghani

FXStreet

Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.

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