USD/CAD unable to sustain directional moves

The USD/CAD continues to trade well within its recent range, unable to trigger a lasting directional move. USD/CAD repeated the pattern seen over the previous days. It fell during the first half of the day, only to take back losses during the American session, driven by oil prices and market sentiment. At time of writing, USD/CAD is trading at 1.3395, virtually unchanged on the day.

“USDCAD has yet to break out the tight, six-session consolidation range around 1.34. USDCAD declines have been limited below 1.3380, with notable support around 1.3350. USDCAD gains have been restrained above 1.3420,” said Eric Theoret, Strategist at Scotiabank. “We remain USDCAD bulls, looking to a rally toward the upper 1.35s and the 50% retracement of the January-May decline.”

USD/CAD levels to watch

Immediate resistances are seen at 1.3423 (Nov 2 high), 1.3433 (Oct 28 high), 1.3445 (Mar 9 high) and 1.3498/1.3500 (Mar 2 high/psychological level). On the flip side, supports could be found at 1.3364 (Nov 3 low), 1.3300 (psychological level) and 1.3276 (Oct 25 low).