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USDCAD : Still Within the Consolidation Range

USDCAD : 4 Hour Chart

US dollar remain higher against Canadian Dollar today as Fed Chairwoman Janet Yellen showed hawkish view on the economy. Yellen said that the U.S. economy is recovering and the labor market is also improving. On the 4 hour chart, USDCAD continue to consolidate within the ascending triangle pattern which gives a bullish signal. The pair may break the key resistance at 1.0984 once it will reach the apex of the triangle. The 50 day SMA and 100 day SMA are also signaling an upward continuation. The rising support trend line is preventing the pair to decline it but if the pair declines below this trend line, it will signal a reversal from uptrend to downtrend.

USDCAD : Daily Chart

On the daily chart, we can see that the pair is currently facing support from the previous resistance at 1.0948. 200 day SMA also seems like acting as support for the pair. So a decline below this support level and the rising support trend line will only revive the bearish trend on the pair. The New Home Sales Data is coming out today at 10:00 AM EDT which might change the direction of the pair. Let's see whether the pair continues to trade in the consolidation range or breaks the current trend after the release of the data.