9-day range 153 pips
The USDCAD has been moving up and down over the last 9 days of trading. That range trading has been within a 152 pip trading range. The high reached 1.3792. The low 1.3640.
In between is the 100 and 200 hour MAs. Over the last 4 days, the price has moved above and below those MA levels. There are a number of moves below and then above and then below. The price just moved back below those MA levels at the 1.36956 to 1.37045 (i.e. around the 1.3700 level). With the 1.3700 level being a natural technical level, it is kinda good to have those MAs bracket the level. Stay below is more bearish. Move above, and its "Rats! Back to the drawing board".
When the market consolidates in a range, the market can go either way. In fact the price action is screaming that. As traders, if you want to get involved, the best location are the extremes. Absent that, finding an area where the bias turns from a little more bullish, to a little more bearish (or visa versa) can be tried (like the 1.3696-1.3704 area). If that level holds, going to the lower extreme at 1.3640-49 becomes the next target. If that breaks, there is potential for more run. After all, the price gets outside the box that has confined it for 9 days.
Stay below 1.3696-1.3704.
PS oil is up $0.79 today or 1.67% to $48.12. The high reached $48.22. That is helping the CAD rebound (USDCAD move lower).
