The USDCAD currency pair has been trading in an up and down range for the past few days. Yesterday’s low was 1.36238. Today’s high was 1.3647. That’s not much movement.
It is within the range of its 100-day moving average between the levels at 1.36369, and the price has been moving above and below this level since Friday when the price pushed back above this level.
So buyers and sellers are telling us through price action that they are unsure. Buyers can push the price up away from the 100-day moving average. Sellers cannot push the price down away from the 100-day moving average.
In this video, we review trading levels and point out that when the market is stumbling, it is time to look for an opportunity to break out. It stands to reason that markets do not stay in a 24 basis point trading range forever.