Yesterday in the USDCAD, traders tried to stretch the market out of its narrow box—but both attempts failed. First, the pair extended its 30-pip range to the upside, only to run out of steam – quickly. Then it broke lower, extending to the downside, and that too fizzled. The net effect? The 5-day trading range has only widened slightly, from about 30 pips to roughly 40 pips—hardly impressive and still extremely narrow.
That failure on both ends doesn’t change the broader takeaway: when ranges get this tight, the market is primed for a break. Right now, the 5-day high sits near 1.3971 and the low is anchored at 1.3931. A decisive move beyond either of those boundaries could trigger momentum and a directional run.
In the meantime, traders are left watching a cluster of key moving averages—including the 200-day, plus the 100- and 200-hour MAs—all packed into the zone between 1.39427 and 1.3953. That tight confluence is acting as a short-term bias barometer, and whichever side of it holds could help define the next tilt in sentiment.
This article was written by Greg Michalowski at investinglive.com.