USDCAD Overnight Range 1.2030-1.2110    

The US dollar is down across the board with the global bond sell-off, soft equities and rising oil prices all offered as reasons for the move. More than likely, all those factors contributed as did the herd mentality of traders who were looking for direction. Last Friday’s US employment data didn’t provide any conclusive evidence that the US labour recovery was satisfying FOMC objectives and there has nt been any decent data since or on tap today. That sets the stage for another choppy trading day.

The USDCAD rally stalled at 1.2105 and retreated through support at 1.2080 with the bump in WTI prices above resistance in the $59.90/$60.00/bbl area dropping down to 1.2030 in early New York trading. The lack of top tier domestic data this week means that USDCAD direction is at the mercy of US dollar direction and oil prices.

Greece managed to make the IMF payment due today which may merely be delaying the inevitable or a sign of good things to come.

USDCAD technical outlook

The intraday USDCAD technicals are bearish while trading below 1.2120. The overnight break of support at 1.2080 led to a quick test of 1.2030 which has held, so far.  A move below 1.2030 will extend losses to the key 1.1940-60 area. A break above 1.2120 would negate the downtrend and suggest further 1.2030-1.2160 consolidation.

Today’s Range 1.2030-1.2110

Chart: USDCAD 1 hour with suggested trading band until Wednesday