USDCAD continues to consolidate near the lows of the range as a combination of the strength in the CAD and strong oil prices have helped to keep the pair near the support region. But considering the amount of time being spent in this region and the way the price action has been going on, it looks as though a large move may be on the cards.
USDCAD Trades in Tight Range
It was a week of low volatility not only in the USDCAD pair but also in the other pairs as well as several currencies lacked direction through the course of the week. There has not been many important economic events during the week to drive the markets and this has led to a kind of stalemate as the traders do not know which direction the pair is going to move and this lack of certainty has led to the traders to adopt a wait and watch approach for now.
It is likely to lead to a lot of relief for many traders to know that the week is coming to a close. It has been a tough week of trading across the markets with a lot of choppiness being seen in many pairs as the lack of direction was visible. This has made it difficult to trade any pair with any form of confidence and this has been the same case in the USDCAD pair also which has been caught in a tight range since the beginning of the week. The traders would hope that the following week would help to bring in some much needed volatility in the markets.
Looking ahead to the rest of the day, we do not have any major news from Canada for the day while it is a bank holiday in the US, which means that it is quite likely that the volatility will be even lower during the US session due to lack of liquidity. So, expect some tight ranging for the day.
This article was originally posted on FX Empire
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