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USD/CAD All Squared up

I wanted to take a look at the USD/CAD because we have a couple of key data points coming up. Well, the FOMC meeting minutes is not exactly data, but it might remind the market that the FOMC is note going to raise rates mid-year. This might do a little damage to the USD/CAD, or at least keep it pressured. Friday's Canadian jobs data might further help USD/CAD find direction.

USD/CAD Daily Chart 4/9


(click to enlarge)

At the moment, USD/CAD looks squared up in the daily chart. With the event risks ahead, traders respected the 1.2350-1.24 support area for the multi-month consolidation range that began in January when price came up to about 1.28. 

We should note that the outlook outside of the range is bullish. But if after Friday, price falls below 1.2350, we are likely going to see a bearish correction that has the 1.20 handle in sight. If price closes above 1.26 that means there is a bit of bullish bias within the range, and the pressure will be on 1.28 again.

A break above the 1.2835 high would open up the 1.30-1.3050 area, which represent the highs from 2008-2009.