Forex: USD/CAD surrenders gains to trade at 1.0223/24

The USD/CAD has traded in a tightened 23-pip range Monday (1.0218 session low, 1.0241 session high), as European markets brace for the Italian electoral outcome. Levels have been quite muted for the pair this far, however in recent moments the cross has surrendered the majority of its gains, returning near opening levels at 1.0223/24 at the time of writing.

Currently, the cross is operating in positive territory, up a tepid +0.01% Monday. The ICN.com technical analyst team points to the resistances at 1.0290, then 1.0310, and finally the 1.0355 level. Conversely, an extensive movement below the 1.0205 handle will rekindle supportive means at the 1.0165 onto 1.0120.

According to the ICN.com Technical Analyst Team, “The USD/CAD is trading above the 1.0355 level, indicating that a harmonic formation might be formed. Moreover, momentum indicators are showing overbought signals, however we will ignore them unless level 1.0120 was broken. Ultimately, prolonged stability above the 1.0055 level keeps the upside possibility.”

Monday looks to be dominated by the Italian election, however later today at 17:15 GMT, BoC Governor Mark Carney’s speech will add some drama to the USD/CAD, which has been on the move in recent weeks