USD/CAD: Are we set to witness a rollover?
The US Dollar is currently trading at 1.32060 against the Canadian Dollar during today's London session.
If you follow this pair you will know that it is well in it's nature to become range-bound, taking a look at the weekly timeframe we can see how choppy the pair has been and been trapped in a range of about 185 pips from high to low. So yes when trading this pair one needs to factor that in!
Dropping down to the Daily and 4-hour timeframe we can see how 1.33450 has played as a major level of resistance for the pair as we have seen multiple drives through but rejecting at the same time! We have now printed a new low in and around 1.317000, and since seen a minor correction in price and currently rangebound at 1.32400 as shown in the screenshot above! Provided we sustain a break out of that range I do think we could see a new leg tot he downside with the first target of 1.31000. If we break to the upside there is a possibility of a steeper retracement, overall downside targets remain the same.
With the Canadian Employment looking a lot better off the back positive data last week i do anticipate that follow through for the Canadian Dollar assisting in the bearish bias on Dollar Cad, However, the market is waiting for Canadian Inflation out tomorrow at 13:30 GMT which is sitting with a consensus of 2.0% YoY so stay tuned to our Market news section, Twitter feed and social media accounts for further updates!