USD/CAD Moves Remains Within the Narrow Range – Presents Opportunities on Both Sides

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ByLCMS Traders FX Analysis Team

 JUN 9, 2021

USD/CAD briefly moved above the 1.2100 level yesterday and is now once again trading 0.23% lower to 1.2087. The intraday support levels are at 1.2072 and 1.2055. The near-term resistance areas are at 1.2112 and 1.2144.

The pair is moving within the ongoing trading range which has led to a Bollinger bands squeeze and it appears the pair might move on either side. The SMA-14 is indicating support at 1.2073 while the SMA-50 is indicating resistance at 1.2276. The RSI is at 44 and the MACD is below the zero line. Following the narrow trading range, the pair continues to present opportunities on both sides. A decent buying entry is ideal at the following levels

Direction: Buy

Entry: 1.2065

Take Profit: 1.2115

Stop-Loss: 1.2030

On the other hand, a sell entry is ideal at the following levels

Direction: Sell

Entry: 1.2125

Take Profit: 1.2065

Stop-Loss: 1.2155

On the intraday charts, it’s still unclear which side the pair is likely to breach. However, based on the weekly charts the pair is more vulnerable to the downside and an intraday closing at or near 1.2030 would be an indication of a breach below 1.2000 in the coming days.