- USD/CAD has bounced up from Thursday’s low of 1.3325.
- The immediate bias remains neutral with pair stuck in Thursday’s trading range.
USD/CAD is trading at 1.3353 at press time, having defended Thursday’s low of 1.3325 early today.
Despite the recovery, the immediate bias remains neutral. That’s because the pair is still trading well within the range of Thursday’s candle, whose long upper and lower wicks indicate indecision.
A move above Thursday’s high of 1.3418 would mean the period of indecision has ended with a bullish breakout. That would open the doors to the 100-day simple moving average (SMA), currently at 1.3462.
Alternatively, acceptance below Thursday’s low of 1.3325 would confirm a bearish reversal.
With the 5- and 10-day SMAs trending north and the daily chart reporting a higher low and higher pattern, the odds appear stacked in favor of a break above Thursday’s high of 1.3418.
Trend: Bullish above 1.3418