October 28, 2024 at 03:43PM
The USDCAD is consolidating after reaching new highs going back to August 5. In trading today, the high price extended to 1.39057. The low price extended to 1.38813. That’s only a a narrow 24 – 25 trading range. That is well below the month-long trading range of 55 pips. There is room to roam but the market is being confined at the moment.
Having said that, there are two support levels that I am watching. The first is at 1.3888. The price has traded above and below that level in trading today but is currently back above. The other level of support is at 1.3864. See the video above that outlines the importance of those levels.
With the session low at 1.38813, the price has spent time below 1.3888 (by 7 pips). However, the low price has stayed more comfortably above the low target at 1.3866 (by 16 pips).
Going forward, it would take a move below the 1.3888 level and then below the 1.3864 level to disappoint the buyers. Until then, the buyers still remain more in control with the high price from August at 1.39458 the next key price to aspire toward.
TECHNICAL SUMMARY for USDCAD:
Market Conditions:
USDCAD consolidating after reaching new highs since August 5
Trading range narrowed to 24-25 pips, down from 55-pip range
Key Levels:
Support:
1.3888 (tested today, currently holding)
1.3864 (lower support level)
Resistance:
1.39458 (August high, next target for buyers)
Recent Price Action:
High: 1.39057
Low: 1.38813
Price traded above and below 1.3888, currently back above
Outlook:
Buyers remain in control unless price breaks below 1.3888 and 1.3864
Move below 1.3864 would disappoint buyers and potentially lead to further selling
Holding above support levels keeps focus on August high (1.39458)
Key Takeaway:
USDCAD is consolidating, but buyers maintain control as long as support levels hold.
This article was written by Greg Michalowski at www.forexlive.com.
