The Canadian dollar got knocked for a loop with the open of Asia trading due to a sharply rising US dollar against the majors. A report in a German magazine, since denied by officials, that Germany was OK with Greece leaving the EU, sent EURUSD plunging and gave the dollar a major bid. That wasn’t all. Russia and Iran announced oil production increases causing WTI to slide which also took a bite out of the loonie.

The North American session has started out a bit calmer and USDCAD has retreated back to Friday’s closing levels. On the other hand, EURUSD remains under pressure and has only recovered slightly. Headlines will drive trading for the balance of the day.

The USDCAD technicals are bullish while trading above 1.1570 with the break above key resistance in the 1.1740-60 zone pointing to further gains toward 1.2040. A break below 1.1740 should lead to a retest of 1.1680

Forecast Trading Range for the day 1.1740-1.1820