USD/CAD is trading in a lower range on Monday, after falling nearly 100 pips on the back of oil’s rise, with the crude topping $54 a barrel.
USD/CAD dropped sharply at the beginning of the New York dragged by loonie’s strength, and hit a low of 1.2427 before finding support and entered a consolidation phase. At time of writing, the pair is trading at 1.2450, recording a 0.50% loss on the day.
USD/CAD technical perspective
“Short-term trend momentum has weakened or turned negative on the 1-hour and 6-hour charts, which will make near-term gains through 1.25 a struggle and perhaps see a little more pressure on support in the mid/upper 1.24 area”, said the TD Securities team. “Ranges are narrowing, which is usually a prelude to more volatile and dynamic trading”.
USD/CAD dropped sharply at the beginning of the New York dragged by loonie’s strength, and hit a low of 1.2427 before finding support and entered a consolidation phase. At time of writing, the pair is trading at 1.2450, recording a 0.50% loss on the day.
USD/CAD technical perspective
“Short-term trend momentum has weakened or turned negative on the 1-hour and 6-hour charts, which will make near-term gains through 1.25 a struggle and perhaps see a little more pressure on support in the mid/upper 1.24 area”, said the TD Securities team. “Ranges are narrowing, which is usually a prelude to more volatile and dynamic trading”.
