USDCAD Overnight Range 1.2905-1.2950

The Canadian dollar dipsy-doodled within a narrow trading band in a fairly subdued overnight session and continued the pattern when New York walked in. The first move lower found support and USDCAD quickly climbed to test resistance at 1.2950 as US dollar demand vs. the majors resumed and WTI prices declined.

The day had a promising start when China reported that Q3 GDP was 6.9%, beating the forecast of 6.8% but a tick below the official target of 7.0%. At first blush, traders liked the news but quickly realized, that it was China, and therefore, the data result was suspect.

The European session was reportedly dull.  EURUSD headed lower which could be a bit of position adjustment ahead of the ECB meeting later this week. USDJPY traders bought yen after starting to reconsider the prospect of further Japanese stimulus any time soon, following the BoJ governor’s speech and other official comments.

Canadian’s are voting today and have a choice of three beef entrée’s on the menu.  One is over-cooked, one is blue-rare and the third is tofu. And all are suffering from a variation of mad-cow disease.

As for the Loonie, the short term results may not have much of an impact but it is hard to see a Liberal majority government with the tax and spend platform being good for the Canadian dollar.

USDCAD technical outlook

The intraday USDCAD technicals are bearish while trading below 1.2950 but downside probes have failed to break below the uptrend line from May which resides at 1.2840.  The intraday technicals are mixed while trading between 1.2890 and 1.2950.  A move below 1.2890 will lead back to 1.2840 while a break above 1.2950 targets 1.3010.

Today’s forecast range 1.2905-1.2950

Chart USDCAD 30 minute with intraday resistance highlighted