USDCAD Overnight Range 1.2222-1.2275    

Brussels is sprouting optimism over the possibility that an EU/Greece deal can be hammered out today. Greece is offering to include reforms in exchange for cash which is seen as a “break-through” despite making and breaking these same promises every other time that they wanted euros. The Greece/EU has been the main/only focus in Monday FX trading leaving the rest of the G-7 currencies to wallow on the sidelines.

The FX markets are a mixed bag of indecision and trading sideways and the Canadian dollar is an avid participant moving higher and lower but going nowhere. There isn’t any US data of note due today which adds to the quiet.

The week ahead will be dominated by regional specific data releases including PMI’s in Europe and Durable Goods in the US.  Canadian economic statisticians are quiet leaving the Loonie at the mercy of cross activity and general US dollar direction.

.USDCAD technical outlook

The intraday USDCAD technicals are bearish with the downtrend line from June 5 remaining intact while trading below 1.2280.  A break below 1.2210 will lead to a test of 1.2140 and perhaps 1.2080. A move above 1.2280 would extend gains to 1.2360.

The short term technicals are bullish while trading above 1.2080 representing the uptrend line from September 2014 which is being guarded by support at 1.2140 and 1.2120.

Today’s Range 1.2220-1.2280

Chart: USDCAD 4 hour