USDCAD → Support retest. The price is in the range

8 Jun 2023

USDCAD is under the pressure of the downtrend, but at the same time a sideways consolidation is forming, which can last for quite a long time.

The currency pair is falling from the range resistance and yesterday it already tested the key level 1.3317, but now, a few hours later, another retest is forming.
There is a chance that the market can break through the support at 1.3317, but only if the volatility declines and the price either forms a consolidation above (pre-breakdown consolidation) or below the level after the breakdown and then heads down.



BUT! If the price makes a quick false-break and forms a consolidation above the level, there is a chance to use the "inside range trading" strategy. In this case the price can head upwards!
The moving averages are a strong resistance

Strong Resistance: 1.3411 and 1.34500.
Strong support: 1.3317
As we see the formation of a retest to the support, the chances of a breakout are getting higher.

Regards, R.Linda!