USD/CAD Continues Moving In a Narrow Range

#OPINIONLEADER# #Signal#

ByLCMS Traders FX Analysis Team

 JUN 8, 2021

USD/CAD is moving in a narrow range for almost two weeks and is currently trading at 1.2089. The intraday support levels are at 1.2066 and 1.2035 while the psychological support level of 1.2000 is held so far. The intraday resistance levels are at 1.2100 and 1.2138.

On the intraday charts, the SMA-14 is indicating support at 1.2070 while the SMA-50 is indicating resistance way high at 1.2285. The pair is also above the mid-Bollinger band while the contracting upper and lower bands are indicating a squeeze. The RSI is 44 and appears flat while the MACD is below the zero line. Based on the intraday price pattern the pair is presenting opportunities on both sides. A buy entry would be ideal at the following levels.

Direction: Buy

Entry: 1.2060

Take Profit: 1.2010

Stop-Loss: 1.2035

On the flip side, a small rally above would be ideal for sell entries at the following levels

Direction: Sell

Entry: 1.2125

Take Profit: 1.2075

Stop-Loss: 1.2155

An intraday closing above 1.2130 would be an indication of an upside breakout while on the lower side an intraday closing below 1.2030 would strengthen bears to challenge the major support area of 1.2000 and move further lower.