Forex Trading: USD/CAD Remains Stuck In A Trading Range

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Forex Trading: USD/CAD Remains Stuck In A Trading Range

By Greg Michalowski on March 27, 2009 | More Posts By Greg Michalowski | Forex News By FXDD

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After breaking below the 100 day MA on Monday, the USD/CAD could not muster any additional momentum to the downside. In fact the last 4 days have seen the USD/CAD rally for 3 of the days - not the type of momentum looked for after a break of such a key moving average.

The current price is back above the key moving average at the 1.2392 level. The price is up as some doubt has entered the market regarding the rebound. This has lowered stocks and commodity prices today. When commodity prices go down, the Canadian dollar tends to fall (USD/CAD moves higher).

So taking a step back, the pair remains stuck in a range. It will continue to be influenced by the ebbs and flows of the economy. If there is a spring rebound and stabilization of housing, perhaps the trend to the downside continues for the pair (hopefully with a little more conviction). However for the time being, the “will” for a break is just not there and consequently, I would rather sit on my hands and be patient.

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