Nick Nasad
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USD/CAD - Will Range Support Confine The Pair or is it Time for a Break-Out?

The USD/CAD has had a pretty active session, and the CAD has managed to win the battle for the day following the BOC interest rate decision. As a result the pair is showing some interesting action in today's session.

  • It has broken down from resistance at 1.0555.
  • Pushed through its 200-ema and is approaching the lows/pivot support set on August 27th and August 22nd.
  • There's a bearish cross between the 21 and 55 ema's pointing towards bearish structure.

The test of support at 1.0470 then is the key level to monitor.

A break downward means we can project a measured move of the range (1.0470 to 1.0555, or 85 pips) down from the would-be broken support, with a target near 1.0380.

However, if support at 1.0470 holds, then we may continue the sideways action we have seen in this pair over the last 10 sessions. 

- Nick