USD/CAD Lower in Opening Hours

USD/CAD is trading lower in the first hours of the opening session today as market participants are cautious and careful in the week before Christmas. US dollar bulls are withdrawing a bit as the US currency is seen to decline against its competitors.

USD/CAD traded at 1.3418 last week and went slightly below 1.34, currently 1.3383. Main trend on the short-term remains bullish but on the long-term we can observe how narrow of a path the pair has chosen to go. Since May USD/CAD has been trading in the range between 1.27 and 1.34. Last week the USD made a low of 1.3080 against the CAD and that acted as a support, moreover the pair got assisted by the 200SMA.

What follows next might very well be a consolidation until years end as we have no major news or events that can inject new volatility. Traders and investors might take this time to get off the markets and spend time with their families in the warmest holiday of the year.

Chart: USD/CAD D1