USD/CAD: RANGE BOUND PRIOR TO POWELL'S TESTIMONY
Good afternoon traders and welcome back to EverythingFX
The US Dollar is currently trading at 1.31260 against the Canadian Dollar during today's London's session.
Looking on the higher timeframes we can see there was a Doji candlestick closure on a weekly timeframe, indicating indecision between buyers and seller off the back of a positive Non-Farm Payroll on Friday.
Dropping down to a Daily timeframe we can see we can see price is currently rejecting off our level of support at 1.31000 priting a hammer off the back of yesterday's daily closure at 10pm GMT. On a 4-hour we have been going side ways, and this is no surprise to me with what we have ahead of us fundamentally this week. On a technical picture provided we break out of the consolidation our next level of resistacne is 1.32500 which is a clean 100 pips uopn a break out. Where as if we break to the downside our next level of support is is 1.28000 providing a good swing position targeting around 300 pips.
Fundamentally we have Fed Chair Jerome Powell scheduled to testify at 15:00 GMT tomorrow afternoon which will be interesting to see on which side of the fence he is standing on with regards to the Policy after a turn in NFP this past Friday as well as the Canadian Rate Statement at 15:00 GMT as well which is forecast to remain the same at this meeting. We also have Crude Oil inventories out in the US tomorrow so it will definitely be a busy one for this pair with OPEC recently confirming the 9-month Production cuts. Do stay tuned to our market news section as well as our social media feeds for updates!