USDCAD continues its ups and downs and is stuck in the mud

The
 
 USDCAD  remains stuck in the mud and the tires are going deeper and deeper. The low to high trading range is only 45 pips that is well below the 81 pip trading range over the last 22 trading days.

The low today tested the low from yesterday at 1.2673 (the low reached 1.26726). The inability to push lower, and the overall better bid in the USD, has led to the pair moving back higher and a retest of the Asian session high at 1.27167. The North American high reached 1.27179 – just above the Asian high. The move higher has gotten back above the near converged 100/200 hour MAs near 1.2707 to 1.2710. The current price is just above those levels at 1.2713.

What next?

Get out of the mud!

The last three trading days has seen a high of 1.2733 and a low of 1.26623 or 71 pips in three days. The low level stalled at the 38.2% of the move up from the January 19 low) . The high yesterday extended above the 100 hour MA but failed quickly.

If the price can stay above the MAs (blue and green lines), that would be the best case scenario for a potential break out of the 3- day mud pit.

That would be good news.

The not so good news is that about getting out of THAT mud pit, is the last 17 trading days has seen the price stuck in a bigger mud pit with most of the trading between 1.26496 and 1.27958 (146 pips over). There was an failed extension below the low last week on ECB volatility), but that only increased the over 2 week range to 161 pips.

So getting out of one mud pit, but staying in another is not great but at least it would be something.

As type, the USDCAD is trading up to 1.2626 That is getting closer to the high from yesterday at 1.2733.

GET OUT OF THE MUD!