USDCAD Overnight Range 1.2442-1.2552

USDCAD spiked to 1.2550 from 1.2490, just as local traders were getting to their desks, indicative of either a “one-off”order, a simultaneous bullish USDCAD bias or both.  The move may have also been a case of “if the bottom holds, try the top”.

The US dollar has recouped almost all of yesterday’s post FOMC minutes losses in a thin and choppy overnight session although the re-existing currency ranges remain intact. The FOMC minutes were considered doveish, initially and eventually dismissed with a few analysts noting that the meeting occurred prior to the strong non-farm payroll report. The Fed focus shifts to Tuesday and Janet Yellen’s Humphrey-Hawkins Testimony.

The Asian markets suffered from greatly reduced liquidity due to the Year of the Ram festivities with AUD, NZD and JPY all down. EURUSD trading was erratic within a narrow range.  Another EU meeting about Greece is slated for Friday.

USDCAD technical Outlook

The short term technicals are bullish with the break of resistance in the 1.2490-1.2500 area but need to extend gains through 1.2550-75 resistance to target the 2015 highs again or risk further consolidation within the 1.2360-1.2560 trading band. For today, USD support is at 1.2520 and 1.2490.  Resistance is at 1.2550 and 1.2575

Today’s Range 1.2490-1.2555