Canadian Dollar – rangebound but still presenting opportunities
The Canadian Dollar pair (USDCAD) lost a little ground yesterday, falling from 1.3385 to 1.3305 on the day. The value of the neighbourly couple has been swinging about a little bit lately, frustrating the swing traders by being unstable in both directions. This will partly be due to the range-bound nature of the current market, with a slightly rising base of support currently at 1.3275, and a declining (minor) resistance around 1.3440, capped by the range top at 1.3470. USDCAD has managed to open today below minor interim support at 1.3315, with the next support a mere 40 points away. Even if these give way, and on the current performance this is no more than 50/50, we do not see any likelihood of a fall down as far as the low for the year of 1.3070 that was set in February. In short, there is not much to get excited about with this product, but markets that behave like this can be an excellent training ground for novice traders looking to familiarise themselves with the workings of the Foreign Exchange markets.