USD/CAD has been moving sideways for almost a month already, which is not at all surprising for this pair that usually ranges. The pair has found support near the 1.0830 level and resistance at 1.0920, creating a 90-pip range.
Price is ready to test the range resistance with stochastic indicating overbought conditions and heading lower. A bounce from the ceiling could lead to a move back down to the bottom for a 90-pip trade. Using a 30-pip stop right around the previous spike higher around May 21 could yield a 3:1 return on risk.
There are no major economic events due from both the US and Canada today, which suggests that there’s a good chance the pair could stay inside this range.
By Kate Curtis from Trader’s Way