Canadian Dollar Choppy Range is Risky

[B]Commentary[/B]: Near term USDCAD price action is choppy and corrective as well, which makes trading this pair on a short term basis risky right now. When price action is choppy, we prefer to sit tight and wait for a clearer pattern to emerge.

The longer term charts (we are showing the weekly today) indicate that a significant bottom may be in place at 1.0340. A rally above 1.0676 most likely leads to a break above 1.0866. Short term, there is a possible head and shoulders continuation pattern, which is bearish. This pattern would suggest a retest of 1.0340 is in order before a reversal occurs.
[B]Strategy[/B]: Flat

[B]Written by Jamie Saettele, Technical Currency Strategist[/B]