USDCAD Overnight Range 1.2398-1.2480  

The Bank of Canada left interest rates unchanged while the statement reflected the modestly rosier outlook painted by Stephen Poloz in his speech last week. Unfortunately for USDCAD bears, it wasn’t rosy enough to offset the tide of global dollar demand sparked by renewed optimism that the long waited US economic recovery is starting to take hold.

The US dollar rally paused in Asia, except for USDJPY which returned to June 2007 levels on the back of bullish technicals and stop loss buying.

EURUSD appeared to consolidate yesterday’s losses in the European session but bounced higher in New York on the back of a news report suggesting that Greece and its creditors were making progress on an accord. EURUSD jumped to 1.0915 from 1.0830 on the news.

 USDCAD technical outlook

The intraday USDCAD technicals are bullish and looking for a move to 1.2560. The break of resistance in the 1.2390-1.2400 area will act as support on a correction as will the uptrend line down at 1.2340. For today, USDCAD support is at 1.2410, 1.2390 and 1.2360.  Resistance is at 1.2470, 1.2505 and 1.2560.

Today’s Range 1.2430-1.2520

Chart: USDCAD Daily with target shown