FX.co ★ USD/CAD: minor range pattern

USD/CAD Uptrend Line Retest!

The USD/CAD pair was trading at 1.3721 at the time of writing. It's trapped between 1.3668 and 1.3740 levels in the short term. The current sideways movement could bring new trading opportunities.

As you already know from my previous analysis, the USD/CAD pair dropped below the uptrend line signaling the upside movement ended and that the sellers could take the lead. Still, after its strong drop, the rate came back to test and retest the broken uptrend line trying to confirm the breakdown.

USD/CAD Trading Conclusion!

As you can see on the H1 chart, the price failed to stay above the uptrend line in the last attempt signaling strong sellers. Now, it moves within a minor range. 1.3740, the uptrend line, and the 1.3806 higher high represent upside obstacles. Jumping above 1.3806 validates a potential upside continuation.

The 1.3668 immediate low stands as a downside obstacle. Dropping below it may signal a deeper drop at least towards the 1.3602 previous low.