Forex: USD/CAD confined to narrow trading range

All was calm across FX markets Monday, ahead of a lightened session, which included both the United States and Canada on holiday today. The tight consolidation of the USD/CAD has clearly reflected this, as the cross has ranged a mere 17 pips (1.0065 – 1.0082) as of European trading. At the time of writing the pair has crept into positive territory this morning, notching a tepid advance of +0.01% at 1.0072/74.

After Fridays plunge in oil prices, CAD proponents are eying the value of crude, which has thus far today recovered to USD $95.62. As mentioned above, no economic data is expected out of either North American economy for the duration of the session.

The ICN.com Technical Analyst team identifies that increased gains in the USD/CAD will be stymied by resistances at 1.0085, up towards the 1.0100 barrier, and eventually 1.0120. On the downside, the pair will encounter means of calculated support at 1.0055, then 1.0030, and finally the 1.0005 handle.

According to the ICN.com analysts, “Despite the fact that the USD/CAD didn’t breach 1.0085 levels till now, Friday's closing above the 1.0055 level weakens the bearish possibility. Meanwhile, we cannot confirm the extension of the upside move until we have a confirmed breakout above 1.0085 levels. Therefore, we prefer to remain neutral in for now waiting for more confirmations.”