- USD/CAD remains unchanged largely in the early European session.
- Pair needs a clear breakout around 1.2300 level to gain meaningful traction
- Momentum oscillators hold onto the positive territory.
USD/CAD extends the previous day's sluggish movement on Thursday with no meaningful price action. The pair confides in a very close trading band comprising 15 pips movement,
At the time of writing, USD/CAD is trading at 1.2307, up 0.01% so far.
USD/CAD daily chart
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On the daily chart, the USD/CAD pair is facing downside pressure since the beginning of the week, after touching the high of 1.2487. The descending trendline from the April 21 top acts as a barrier for the price movement.
Now, if price sustained above the session’s high, then it could crawl back to the 1.2350 horizontal resistance level.
The Relative Strength Index (RSI) indicator reads at 57, which implies that the bulls have the potential to retest June 22 high at 1.2403.
That said, if USD/CAD successfully closed above the 1.2403 mark, then it would head toward the week high at 1.2487.
Alternatively, if price makes a sustained move below the 1.2300 mark, then immediate support could be found at the previous day’s low at 1.2252.
The next area of support would emerge at the 50-day Simple Moving Average (SMA) at 1.2219 followed by June 16 low at 1.2157.
