USDCAD Overnight Range 1.2075-1.2140  

USDCAD has given up all its overnight gains and is probing the lows despite modestly softer oil prices. A lack of Canadian data today and for the week will leave USDCAD at the mercy of general US dollar direction and oil prices.  Friday’s weak Canadian employment report will ensure traders keep a negative bias towards the Loonie.

Kiwi took it on the beak to start the week with traders unnerved by NZ banks predicting further RBNZ rate cuts, some as early as next month. And speaking of rate cuts, the PBoC announced a 0.25% rate cut to 1 year loan and deposit rates.

EURUSD losses in Asia turned to gains during the European session. There was a definite shortage of Eurozone data, but no shortage of Greek headlines, which provided trading fodder. Greece needs to pay €750 million to the IMF on Tuesday to keep emergency funds flowing.

USDCAD technical outlook

The intraday technicals are bullish while trading above 1.2080 but struggling with resistance at the 1.2150-60 area.  A break of this level would extend gains to 1.2280.  For today, USD support is at 1.2080 and 1.2040.  Resistance is at 1.2140, 1.2160 and 1.2210

Today’s Range 1.2040-1.2120

Chart: USDCAD 1 hour with suggested trading band until Wednesday