USD/CAD still making up its mind on the week

Technical Analysis

Author: Justin Low | usdcad

Trade talks continue to be the main driver for the pair

On the upside, 1.3000 feels too difficult a level for buyers to break through. And towards the downside, last Friday's dip at the close around 1.2870 appears to be the support level that sellers cannot break below.

It's been a back and forth four trading days for the pair, with two attempts to get above the 1.3000 level now failing and for the moment, two attempts to get below the 1.2870 level also stalling.

The pair tried a run for the topside again earlier in the Asian session, but failed short of breaking above the 100-hour MA.

The Bank of Canada rate decision yesterday was basically a non-event, and trade talks continue to be the driving force for the loonie at this point in time. Possibility that the tariffs will exempt Canada and Mexico has given the loonie a bit of a boost, but so far it's failing to push the pair below the key support level for the week.

As volatile as things have been on the week, the pair is pretty much range-bound between the two levels highlighted above. The next trade would be to eye for a break of either one or you could brave through the headline risk that could come at any time and trade the range instead - depending on your risk appetite.