Closed at 1.3348. Trend line at 1.3347. Narrow trading range today.

The USDCAD is having one of those up and down trading days with a narrow trading range.

The close from yesterday came in at 1.3348. The low just reached 1.3351. There is a trend line at the 1.3347 level (connecting lows from Dec 4 and yesterday's low).

A move below that level starts to look toward the 38.2% at 1.3335 and then the 200 hour MA at 1.33295. Note that the low yesterday got close to that MA line, and on Monday, the same MA stalled the fall. Key level for the day and for the rest of the week. A move below would increase the bearish bias.

The move higher earlier in the day pushed up toward a swing high from yesterday at 1.33866. The inability to get above, and pushed back toward the 100 hour MA at 1.33587. The last two hours have traded above and below that MA. Stay below now, keeps the sellers more in control.

The range today is only 45 pips so far.The 22 day average is 90. So we have only done 50% of what has been normal. There is room to roam on a break to a new low. Be aware.