USDCAD Overnight Range 1.3387-1.3430        

USDCAD made another 2015 high overnight, this time reaching a level not seen since June 2004.  The move occurred despite the relative stability of WTI prices above $44.00/barrel.  This could be due to month end demand, the poor performance of commodity prices and bullish technicals.

Asian equity indices sank across the board with the Nikkei falling 4.06% in a continuation of yesterday’s North American equity market sell-off. The equity weakness gave rise to defensive risk aversion trading in FX.

That changed, to a degree, in Europe. Bottom feeders rose and both Aussie and Kiwi recovered from the Asian lows. The Loonie’s recovery was much shallower and lacking conviction.  Eurozone sentiment were higher and European equity indices moved into the green

This morning’s US Case-Shiller housing index was unchanged from the previous month, year over year (5.0%) but was slightly worse than the forecast (5.2%). The data was ignored as equity markets and commodity prices have been the currency drivers lately.

USDCAD technical outlook

USDCAD technicals are bullish while trading above 1.3380.  Yesterday’s break above resistance in the 1.3380 area heralded another leg higher with 1.3460 (61.8% Fibonacci retracement of 2004-2007 range) a clear target and then 1.3570.

Today’s Range 1.3380-1.3460

Chart USDCAD daily (cut-out from 2004) note support/resistance