USD/CAD Price Analysis: The pair is in a firm consolidation and these levels are in focus

• USD/CAD is trading 0.03% higher on Friday in a lacklustre session.
• There is now a firm consolidation range between 1.35 and 1.3715.

USD/CAD 4-hour chart

USD/CAD is stuck in a state of equilibrium as the bulls and bears cannot decide on a firm direction in the pair. The most recent trend has been down but after the market hit a low of 1.3315 it seems we are at a stalemate. CAD strength is correlated with oil and at the moment WTI is also stuck in a range albeit at an elevated level. The US dollar is currently trading with risk sentiment and at the moment there are mixed feelings there due to earnings season. 

Looking closer at the chart the two main levels are the orange resistance at 1.3715 and the black support zone at 1.35. If there is a break of any of these it could help us determine the future path of the pair. There is also a green trendline to watch out for but even if the price does break to the upside the next resistance could be at the orange level. 

Of course, the indicators are at mid-range too. The Relative Strength Index is meandering at the 50 mid-point and the MACD histogram is in the green but looking flat. The signal lines are just under the zero level but it is hard to trust them in a sideways environment. This weeks candle could be a negative close if the price does not move far from the current level. It looks like the price is just retracing from the recent bout of USD weakness. Moving forward it would be wise to keep an eye on which way the price breaks from the aforementioned consolidation area.

Additional levels