USDCAD Overnight Range 1.2654-1.2715
Bouncing crude oil prices are making FX markets nervous with a sudden jump to $43.99 from $43.35 without any specific catalyst, in early New York trading. The overnight range is now $42.81-$43.99 with WTI currently sitting at $43.85/barrel. The jump in WTI drove USDCAD from 1.2692 to 1.2654.
Overnight, FX markets were extra-quiet to start the last trading week of April with Australia and New Zealand closed for Anzac Day. The baton was passed to Japan who dropped it. USDJPY traders pared back some of Friday’s gains in a low volume session awaiting the results of the FOMC meeting Wednesday afternoon and the Bank of Japan meeting on Thursday. Of the two, the BoJ may provide the most fireworks due to leaks that additional stimulus measures are planned.
Sterling rallied in Asia with President Obama’s remarks on Britain and the EU getting credit for helping the “Stay” side but didn’t keep the gains in Europe. Eurozone headlines and data failed to have any impact on EURUSD trading. The German ZEW index was mixed and EURUSD drifted in a narrow range.
There isn’t any data of note in Canada leaving USDCAD to track general US dollar direction and oil price movements.
USDCAD technical outlook
The intraday USDCAD technicals are mildly bullish while trading above the 1.2650-70 area, looking for a retest of minor resistance at 1.2720. A move below 1.2650 targets 1.2605 and then 1.2570. A break above 1.2720 would lead back to 1.2760. Longer term, both the downtrend from the April peak as well as the February peak remain intact.
For today, USD support is at 1.2650 and 1.2605. Resistance is at 1.2720 and 1.2750 .Today’s Range 1.2640-1.2720
Chart: USDCAD 4 hour