USD/CAD: Range-Bound Conditions Amid Lack Of Catalyst

Yo-yo type movement in the last 4 days of trading, with a well-defined range between 1.3290 and 1.3370 with most of the volume concentrated at the midpoint of 1.3330-40.

The intermarket analysis fails to support the upward bias given the bullish trend in Oil and the bearish momentum seen recently in the DXY. On the flip side, the US-CA bond yield spread does promote higher prices, which may transpire if the DXY can recover its footing.

Monday’s volume profile formation shows a single distribution, which is encompassed within a wider range, so all signs are pointing for further rotational dynamics until the FOMC.