The pair is in a narrow range for the USDCAD but the buyers are not winning.
The USDCAD is extending it’s low a trading range. The range is currently 39 pips. The 22 day averages 81 pips. There is room to roam and the sellers are trying to make a play once again.
Looking at the hourly chart, the high price yesterday (see red circle 5 and yellow area), stalled at a topside trend line and also a swing area going back to August 5. Since then, the price has accelerated the pace to the downside (trading below a steeper topside trend line – see green numbered circles). The high trendline currently comes in at 1.3162. It would take a move back above that trend line to give the buyers any sort of victory over the sellers.
If the sellers keep the pressure on, the next target comes near the 1 3104 level. That is the lower channel trend line.
The buyers are simply not winning technically. If they are not winning the sellers remain in control. Until they could start to win, they aren’t (it sounds stupid but….). It is as simple as that.