Get above 1.2711 should solicit more upside
The USDCAD is trading up and down in a narrow 43 pips trading range. That is half of the average 86 pip range seen over the last 22 trading days.
Looking at the hourly chart, the lows for the day tested a downward sloping trendline connecting recent lows. Each of the tests of that line found support buyers including the current hourly bar.
On the topside, the 1.2710-1.27113 is a recent swing area from yesterday and today. An intraday low yesterday bottomed at 1.27113. The the high price today peaked at 1.2710. Get above that level and traders will be looking toward the 50% retracement of the range since January 21 and downward sloping trendline (and moving lower). Both come in around the 1.2730 to 1.27338 area.
On the downside, getting back below the swing low from January 27 at 1.26847 and staying below would have traders retargeting the lower trendline.
