Technical Analysis

USDCAD tests a lower trend line (again) and bounces.

Up and down volatility in USDCAD but trend lines above and below confines the price action.

The USDCAD has had some up and down volatility over the last 3 trading days, but a topside trend line today, and lower trend line over the last two days, has confined the trading range on the hourly chart below.

Looking at the chart, the high today got within a few pips of the topside trend line at 1.35664. The high reached 1.35641.  

At the lows today in the Asian, and again in the NY session, a lower trend line also held. That trend line comes in at 1.2507 currently.  

So astute traders are taking the ups and downs by leaning against the trend lines. At some point, there will be a break (and hopefully a run), but for now, traders are happy to play the levels.    


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