USD/CAD technical analysis: Remains well within a 4-week old trading range

Haresh Menghani FXStreet

• The USD/CAD pair extended its sideways consolidative price action and remained well below mid-1.3400s, or 100-hour SMA through the early North-American session.

• A combination of diverging forces failed to provide any meaningful impetus to the pair and led to a subdued/range-bound price action on the first day of a new trading week.

The US Dollar held on the defensive amid a mildly softer tone surrounding the US Treasury bond yields, while an intraday pullback in Oil prices also did little to provide any boost to the commodity-linked currency - Loonie.

Given Friday's failure to sustain above the key 1.3500 psychological mark, the pair's inability to move above 100-hour SMA pivotal point reinforces the recent broader trading range - held over the past four weeks or so.

Technical indicators on hourly charts have been gaining some negative traction and support prospects for a further intraday decline, albeit neutral oscillators on the daily chart warrant caution for aggressive intraday traders.

Hence, it would be prudent to wait for a convincing break through the near-term trading range - between the 1.3380-1.3520 region, before traders start positioning for the pair's next leg of a near-term directional move.

USD/CAD 1-hourly chart

USD/CAD

Overview
Today last price	1.3432
Today Daily Change	-0.0028
Today Daily Change %	-0.21
Today daily open	1.346

Trends
Daily SMA20	1.3449
Daily SMA50	1.3393
Daily SMA100	1.3338
Daily SMA200	1.3247

Levels
Previous Daily High	1.3514
Previous Daily Low	1.3435
Previous Weekly High	1.3514
Previous Weekly Low	1.34
Previous Monthly High	1.3522
Previous Monthly Low	1.3274
Daily Fibonacci 38.2%	1.3484
Daily Fibonacci 61.8%	1.3465
Daily Pivot Point S1	1.3425
Daily Pivot Point S2	1.339
Daily Pivot Point S3	1.3346
Daily Pivot Point R1	1.3505
Daily Pivot Point R2	1.355
Daily Pivot Point R3	1.3585

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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