Daily Price Action
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USDCAD Moves to Challenge Range Top

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On December 6 we looked at a 240 pip range on the USDCAD. The commentary came two days before non-farm payroll, leaving us waiting for a close below support or above resistance.

However, the holiday lull left the pair drifting between the range floor at 1.2670 and the range ceiling at 1.2910.

Last week’s price action began to look relatively bearish, particularly the December 14 intraday selloff. But USDCAD bulls stepped in to close the session for a slight loss rather than a 100 pip decline.

Fast forward to today and the price action still favors buyers. In fact, the pair is just 40 pips below the six-month range top at 1.2910. Moreover, prices are still trending higher since the September low at 1.2061.

That said, we need a daily close (using a New York close chart) above 1.2910 before further consideration is warranted. At least that’s my plan. Until it happens, the USDCAD is considered range bound between 1.2670 and 1.2910.

Although you could play the current range by selling near 1.2910, I would be careful with that. Sellers were unable to retest range support last week and Friday’s bull move was reasonably aggressive. A short would also go against the bullish momentum since September.

A daily close at 5 pm EST above 1.2910 would expose 1.3160. Alternatively, a daily close below the range floor at 1.2670 would pave the way for a move toward the July lows at 1.2420.

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USDCAD range on the daily time frame

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1 comment
Tijani says

Job well done as always.

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