The USDCAD has found support buyers near 1.3717 and resistance sellers near the 50% of the move up from the July low to the August high. That level comes in at 1.3766. The price has been between those extremes since middday on August 7th (4 trading days). The range is only around 50 pips.
At some point, the price is going to extend outside that range. Traders will be looking for the technical clues and breaks. ON a break, they will look for momentum in the direction of the break.
On the downside, a break would have traders looking toward the 100 day MA at 1.3694. ON the topside, move above the 50% and the 200 hour MA at 1.37847 followed by the 100 bar MA on the 4-hour chart at 1.3796 would be eyed.
This article was written by Greg Michalowski at www.forexlive.com.
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