A look at the USD/CAD chart

A look at the USD/CAD chart

This week, the central banks of the United States and Canada brought a lot of volatility into USD/CAD.

USD/CAD shot up but met the resistance of the daily MAs in the 1.3200 area and failed to close near the highs. There was also the 50% retracement of the October advance. More resistance levels align between here and 1.3228 (61.8% Fibo).

On the D1, the pair formed an "inside bar" as it tried to consolidate after the rapid growth. Support is located at 1.3130 (September low, yesterday's low).

A decline below this level will increase the negative pressure and may lead the pair back to 1.31 (200-week MA with didn't support the pair in October) and 1.3050 (the area of the recent low).

All in all, with significant resistance above and strong support below, a broad and volatile consolidation between 1.32 and 1.31 may be the case for the upcoming days.

USDCAD daily chart

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