USDCAD Overnight Range 1.2314-1.2343
There is a whole lot of nothing going on. G-10 currencies are bouncing around in narrow, short term and well defined trading bands without any clear catalyst to explain price action. Traders are complaining that liquidity is poor which exaggerates moves.
Overnight, the RBA minutes were released which added a layer of confusion into AUDUSD. The minutes were not as doveish as the RBA governor was in his speech last week but were soon forgotten. Bank of Japan governor, Kuroda, was back-pedalling from his FX comments last week which gave USDJPY a boost. In Europe, EURUSD spiked to 1.1330 and then retreated just as quickly without any clear reason for either move.
This morning’s May US Building Permits (Actual 1.275 mio) beat consensus while April Housing Starts missed which was essentially a wash and the US dollar barely noticed. Today will be a repeat of yesterday-a lot of noise inside well established ranges.
USDCAD technical outlook
The intraday technicals are bullish. USDCAD is in an uptrend from the May 11th low of 1.1930 which comes into play at 1.2300. In addition, the minor uptrend channel from last week’s low remains intact above 1.2310 with resistance seen at 1.2360 and 1.2390. At the same time, the downtrend from the March is still valid while below 1.2540. For today, USDCAD support is at 1.2310 and 1.2280. Resistance is at 1.2360, 1.2390 and 1.2420
Today’s Range 1.2310-60
Chart: USDCAD hourly