Detailed FX Market Outlook and Analysis

USD/CAD Daily Analysis

USD/CAD narrow trading range is continuing with the current price at 1.2393. Bulls briefly managed to move above the 1.2400 resistance area yesterday but once again closed lower at 1.2378. The intraday support levels are at 1.2376 and 102354. The 1.2400 is still acting as a stiff resistance area while other resistances are present at 1.2419 and 1.2457.

On the intraday charts, the current price is keeping above the SMA-14 which is at 1.2370 while the SMA-50 is indicating resistance at 1.2544. The mid-band is at 1.2368 with upper and lower bands at 1.2473 and 1.2298. The contracting bands are the indicating squeeze that is likely to lead towards a major movement towards the end of this week. So far, the price pattern is neutral and small opportunities are available on both sides. A buy entry is ideal under the condition that the pair close above the 1.2400 resistance on the 4-hourly scale. The target for this trade will be 50 to 60 pips with a stop-loss at 1.2474.

On the flip side, failing close above the 1.2400 resistance area favors selling entries around 1.2390 with a target of 1.2350 and a stop-loss at 1.2421.

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