Trades in a narrow range
The USDCAD is really not going anywhere today. The price is moving up and down. The price is lower on the day (closed at 1.3077) but only by a few pips (trade at 1.3072). The high reached 1.3086. The low reached 1.30516.
When the price goes nowhere, it is a prelude to starting the engine and going somewhere. That’s good news for traders.
Looking at the hourly chart, there are some clear “break” points that traders might expect a run away.
On the topside, the swing highs today came in at 1.3086, 1.30856, and 1.30868. So three tops within about 1 pip. A break above should be more bullish.
On the downside, there are swing lows at the 1.3046 level from yesterday and Friday. The 100 hour MA comes in at 1.30427. A move below those levels should be more bearish.
On breaks look for momentum and follow through buying or selling.
When the market is not going anywhere, you look for the engine to start and the price to go somewhere at some point. So look for the breaks from the technicals and hope the market is in full agreement. If not…. get out and wait some more. It’ll move away at some point.