USDCAD Trapped In Narrow Trading Range

USDCAD retreat on Monday as the crude oil price managed to reverse the Asian session losses, and despite the better economic data from the USA. The United States Chicago Fed National Activity Index came up to 2.61 in May better than expectations of -16.74, and above the April reading of -17.89. The Existing Home Sales Change registered in at -9.7% below the expectations of -3% in May. The median existing-home price in May rose to $284,600 from $278,200 a year ago.

Larry Kudlow, the White House economic adviser said earlier today that there is no second wave of US coronavirus cases, but there are just some hot spots, easing the investor fears and shift their attention to more risky assets.

The pair looks trapped between the 200 and the 100-day moving average since the beginning of June, as traders looking for a catalyst that will initiate a new trend.

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USDCAD Price Daily Analysis

The USDCAD is 0.6% lower at 1.3541 as the consolidation phase for the pair between the 100, and the 200-day moving average is intact. The technical picture remains bearish fr the long term, while a break below the 200-day moving average might accelerate the selling pressures.  

On the downside, the first support for USDCAD stands at 1.3538 the daily low. If the USDCAD pair breaks below 1.3538, the next support will be met at 1.3480 the 200-day moving average. The next target for USDCAD bears is at 1.3407 the low from June 11. 

On the contrary, the initial resistance for USDCAD stands at 1.3630 the daily top. If USDCAD breaks higher, the next hurdle will be met at 1.3689 the high from June 15. The next resistance stands at 1.3779 the 100-day moving average. 

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