USD/CAD is currently struggling to come out of the writer’s block because of Canadian economy. This trading pair is trapped in the maze of a narrow range. The value of this pair is just shuffling between a narrow range at 1.2790. It lacks momentum of smooth trade. This stuck up phase of trading resembles a writer’s writing block. Sometime a writer loses his creativity and finds himself stuck between a maze. He lacks inspiring ideas. His mind fails to produce something worth writing and thus he struggles to get out of this trap. Same happens with traders when a certain pair is dealing with a narrow range.
Canadian Economy and USD/CAD:
Canadian economy is not that much stable right now. The economic data does not seem to support CAD as well. The current economic scenario hints that the current directionless flow of USD/CAD will extend further. The rate of unemployment which seems to increase strengthens this assumption. The increasing number of unemployed citizens is one of the many economic factors that are preventing the rise of this pair(Canadian economy).
Traders and profit grabbing:
The traders of USD/CAD are focusing on the meeting of 10th March of the Central Bank. But till then, this swaying trend of USD/CAD will likely to continue. Recently safe-haven does not seem to deserve this title as the traders are not confident about it. The number of net-long traders is increasing while the number of net-short traders is falling. This fall in net-short traders indicates a reversal in the value of this pair. This fall is exposing the fact that mostly traders are interested in profit grabbing.
Relative Strength Index (RSI) is still hinting an upward trend. It relies on the possibility that the low momentum of trade will lead the rate of exchange towards the expansion area of 1.2880.In order to get out of this block, the value of this pair will have to reach over 1.2880 which is 61.8% expansion to continue upward movement.