As the USD/CAD has become consolidated after achieving a substantial bearish trend, the Forex pair is testing short-term highs.
The USD/CAD has produced a rather consolidated one month of trading. The Forex pair has accomplished the rather tight range after demonstrating a provocative bearish trend which saw a low of nearly 1.20050 on the 1st of June. Since this depth, the USD/CAD has essentially swum in a steady value range and achieved a high of 1.21300 on the 4th of June. Reversals within the rather secure price band have given speculators a chance to test support and resistance levels.
Until the USD/CAD is able to break free of this consolidated trajectory, traders should not expect a major breakout to occur. Support near 1.20750 should be monitored, but traders who are looking for strong downside price action should not be overly greedy when aiming for their take-profits. While the 1.20000 juncture may look enticing to aim for, it may be a better wager to sell the USD/CAD on simple moves higher which come within resistance and then target the 1.21000 to 1.20750 range as legitimate opportunities.
The long-term trend within the USD/CAD certainly remains within its lower bearish depths and traders who are anticipating a sudden ignition of bullish sentiment may find the timetable a substantial test of their patience. Buying the USD/CAD should be done if the Forex pair challenges support levels and starts to sustain its price range, which has been demonstrable the past week.
Traders should likely be looking for a range of 1.20600 to 1.21300 to continue to percolate. Limit orders may prove to be a key ingredient for traders looking to participate within the USD/CAD as they look for changes in momentum. While some traders may naturally suspect that a breakout is bound to happen, wagering on this possibility could prove costly, and it is advised that adequate take-profit and stop-losses are used which do not aim for huge moves in the Forex pair.
The short-term outlook for the USD/CAD suggests that a tight range will remain the flavor of the day. Selling the USD/CAD on slight moves higher may remain the best wager for speculators with quick-hitting objectives as the goal. If a speculator can sell the USD/CAD near the 1.21200 to 1.21500 marks, this might prove to be an attractive position.
Canadian Dollar Short-Term Outlook:
Current Resistance: 1.21350
Current Support: 1.20750
High Target: 1.22070
Low Target: 1.20100