Post of the Day: Ranges versus Channels
I would say this is an example of the USD/CAD in a range bound trade
Power Course Instructor’s Response:
I can definitely see how you interpreted these channel lines as being a range...price is moving between the "range" created by the two channel lines.
However, since the pair has been building lower highs and lower lows, we would say that it is in a downtrend.
When a pair is trading in a range, it does not make new highs or lows...it remains in a horizontal range as you would view it on a chart. It will trade between the same levels of support and resistance for a period of time. See the chart below for an example...