USDCAD Overnight Range 1.2686-1.2815
Dollar bears, hoping for a pre-weekend USD sell-off have been very disappointed so far today, particularly anyone who sold USDCAD after the employment numbers were released. The Canadian data was better than expected, posting a mere loss of 1,000 jobs against expectations for a loss of 5,000. Initially, USDCAD moved lower, from 1.2762 to 1.2725.But that was it. Relentless demand for US dollars against EUR, in particular, quickly reversed the Lonnie’s gains and USDCAD is blasted above 1.2800
Both a weaker than expected US PPI report and a worse than expected Michigan consumer Confidence Survey were ignored.
Overnight, FX trading was more of a meandering stroll within a maze rather than a straight line in any direction. Yesterday’s Kiwi rally has been snuffed and it drifted lower in Asian and Europe.The Nikkei moved higher helping USDJPY stay bid.EURUSD went down, up and down, all within a 1.0567-1.0630 range. UK election worries, a Mark Carney speech and a firm US dollar kept GBP under pressure. All in all, a normal day in FX land.
USDCAD technical Outlook
The intraday USDCAD technicals are bullish while trading above 1.2705 with today’s break of both 1.2760 and 1.2800 putting 1.3050 in play. The magnitude of today’s rally (From 1.2685 to 1.2814) suggests that momentum may wane. For the balance of the day, USD support is at 1.2780 and 1.2740 with Resistance at 1.2815 and 1.2840. The following chart is a daily back to 2008 which clearly suggests a lack of resistance until 1.3050