Chart: Will resistance hold in the USD/CAD range?

Dollah Traders Flock!

The USD/CAD rally is capping around a key area of ​​technical resistance.

Will the pair maintain its range pattern? Or will we see an eruption?

USD/CAD 4 Hour Forex Chart from TradingView

In case you missed it, the US dollar gained a few nuggets against its peers as traders eased speculation of a Fed rate cut after Friday’s US NFP report and ahead of this week’s FOMC meeting minutes and US CPI and PPI publications.

Meanwhile, the Canadian dollar lost some ground against its safe-haven counterparts as traders worried about Middle East tensions and less-than-accommodative Fed expectations.

Remember that directional biases and market price volatility conditions are usually driven by fundamentals. If you haven’t done your US and Canadian dollar homework yet, then it’s time to check the economic calendar and stay up to date with the daily fundamental news!

USD/CAD, which has been trading in an uptrend since late September, is climbing high around the 1.3650 level. Coincidentally, the psychological level lines up with a September resistance and the R1 (1.3618) Pivot Point line on the 4-hour time frame.

Can USD/CAD bears hold on to range resistance?

Watch out for more bearish wicks and candlesticks, which could drive selling pressure and start a decline that could take USD/CAD to its 1.3550 Pivot Point and mid-levels.

If it turns out that USD/CAD is just taking a break, then the pair could have more gains. Watch for new October highs and sustained trading above the 1.3650 area, which opens up a possible move to the 1.3700 psychological hand or the previous 1.3750 area of ​​interest.

Whichever bias you end up trading, remember to practice proper risk management and be aware of top market catalysts when trading it. Luck!