USDCAD Analysis

USDCAD is consolidating and building energy as liquidity conditions were tight this week with the Canada day holiday on Monday and US Independence day yesterday. The price is confined to a tight range around 1.31450 with resistance at 1.31755 and the 100 period MA followed by 50 MA at 1.31967 and the 1.32000 level. A break above this area could point to a retest of 1.32581. This was the trough of the double top from late June with further resistance at the highs of 1.33818.

Support for the pair is at the 1.31241 area followed by the low at 1.31108. The 200 MA is found at 1.30962 with the 1.30704 level providing support that was formerly resistance. The falling support trend line at 1.30100 is adding strength to the 1.31000 level and this is a point at which buyers may wish to engage with the market. A loss of this area points to further declines through 1.29600, 1.29200 and 1.28940 with stronger support at 1.29640.