USD/CAD: Pinioned between closely placed support and resistance lines

The Canadian dollar eked out a small gain this week, but broke no new ground and ended near the bottom of its October range. Opening on Monday at 1.3189, Tuesday’s finish at 1.3128 defined the rest of the week. The conclusion on Friday at 1.3125 mirrored the low on Tuesday. Markets await no change in the Bank of Canada’s (BoC) latest economic and policy assessments on Wednesday leaving the bias essentially neutral, FXStreet’s Analyst Joseph Trevisani briefs.

Key quotes

“The sideways movement of the USD/CAD since the failure of the descending channel break on September 21 to institute a new higher trend continued for a second week.  With no important economic information scheduled in the next five days and the BoC unlikely to change its economic assessment or forward view of interest rates, bias should remain neutral to weakly negative.”

“Technically the loonie is hemmed in by close support at 1.3100 and 1.3070 and resistance at 1.3170 and 1.3200. Were the USD/CAD to renter the descending channel at 1.2950 the prognosis for the Canadian dollar would rise substantially.  Without a change in the fundamental picture the current technical aspects of the USD/CAD are unlikely to generate major movement.”