USDCAD Overnight Range 1.2067-1.2145    

USDCAD has gotten thoroughly trounced over the past 48 hours. At one point the Loonie “took off to find the sky and now its flying in a Taxi taking tips and getting stoned”. EURCAD and GBPCAD demand stomped all over the nascent Canadian dollar rally and USDCAD has been bid. However WTI oil prices are pressing up against major resistance in the $60.00/bbl level which is providing the Loonie with some support.

ISM Manufacturing PMI and the Reuters Michigan Consumer Confidence Index missed the forecasts, but just barely, and were unchanged from the previous month.  That was enough for dollar buyers to buy USDCAD which jumped to 1.2070 from 1.2045.

The overnight session was quiet due to May Day holidays and a pounding hangover from yesterday’s market action.

USDCAD technical outlook

The intraday technicals are bullish while trading above 1.2060 looking for a break of 1.2120 to extend gains to 1.2170. However, the short term technicals are bearish.  The downtrend from the beginning of April remains intact while trading below 1.2470 supported by the break of major support in the 1.2340-60 zone, which has reverted to resistance. Next week should see consolidation in a 1.2020-1.2280 band.

Today’s Range 1.2090-1.2170