USD/CAD is currently trading at 1.3348, having faced rejection at 1.34 yesterday.
The currency has been restricted to a narrow range of 1.33-1.34 since April 4. Further, the daily chart shows, the USD/CAD pair has created a narrowing price range over the last six weeks.
Daily chart
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- As of writing, the range resistance is seen at 1.3434 and the lower edge if located at 1.3297.
- A daily close above 1.3435 could yield a rally to the psychological resistance of 1.35. The case for a test of supply around 1.35, however, would weaken if the spot struggles to clear the hurdle at 1.3467 (March 7 high).
- A range breakdown would shift risk in favor of a drop to 1.3412 (50-week moving average).
Trend: Neutral while trapped in a contracting triangle
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