USD/CAD IS IN WITHIN SIDEWAYS RANGE FOR ALMOST A MONTH
USD/CAD is stuck in a range between two strong support and resistance levels around 1.20 and 1.2140. The currency pair was traded lower on Thursday during the European and American sessions. Overall though, the price structure suggests a sideways activity since May 14, between that resistance and the support, and thus, experts prefer to take the sidelines for now.
For the currency pair value to start further declines, it would be interesting to see a downside exit from the channel and a new dip below 1.20, which is the lowest price since 01.06. If we look back in the history of the weekly chart, we will notice that current price levels stopped the strong downward movement in 2017. If it is a breakthrough, it will encourage bears to push the price to test levels around 1.19.
In the upside scenario, if the value breaks above 1.2140 and makes a new high, it would be a signal for the upside exit out of range, and this can encourage the bulls to get involved. This could be a signal that the price will test the previous resistance levels of around 1.22 and 1.23.
Our oscillator indicators are also sideways, and MACD is slightly above the zero lines, but RSI is between the 30 and 70 levels.
For the currency pair value to start further declines, it would be interesting to see a downside exit from the channel and a new dip below 1.20, which is the lowest price since 01.06. If we look back in the history of the weekly chart, we will notice that current price levels stopped the strong downward movement in 2017. If it is a breakthrough, it will encourage bears to push the price to test levels around 1.19.
In the upside scenario, if the value breaks above 1.2140 and makes a new high, it would be a signal for the upside exit out of range, and this can encourage the bulls to get involved. This could be a signal that the price will test the previous resistance levels of around 1.22 and 1.23.
Our oscillator indicators are also sideways, and MACD is slightly above the zero lines, but RSI is between the 30 and 70 levels.