USD/CAD continues to consolidate and range and the traders in this pair might soon get tired and bored of all this slow moves up and down within range. The pair has been unable to break through either side of its tight range and the fact that the range has been only around 200 pips makes the trading even more difficult as there is not much to move around as far as the investors and long term traders are concerned.
USD/CAD To Consolidate
For a brief while last week, we saw a flicker of hope for the bulls and for a breakout as the pair advanced towards 1.3200 on the back of some terrible retail sales data from Canada but it was compensated later in the week by some strong CPI data from Canada. Add to this, the waxing and waning of the dollar strength and we have a perfect recipe for a consolidation phase in the USD/CAD pair.
We are not sure of how long this phase is going to last. We believe that the uptrend is still intact and we do not have any reason for us to change this belief till the strong support region between 1.3000 and 1.3060 is broken. In fact, the repeated and successful defending of this region by the bulls has only reinforced our belief in the uptrend and unless something drastically changes, this will continue to be the state. It is just that the USD/CAD pair has not got a push on the upside and that is the reason for the long wait from the bulls.
Looking ahead to today, we do not have any major news from Canada and we have the core durable orders data from the US but we expect some more consolidation and ranging on either side of 1.3100 for the rest of the day which should further tire out the bulls and bears alike.