USDCAD Overnight Range 1.2278-1.2306       

Holiday’s across the UK, Europe and the US have made for a deathly dull day for those traders not on vacation. Greece politicians stirred the pot saying that, without a bail-out, it would be unable to pay its bills to the IMF in June, but the effect was short-lived.

The US dollar had a bit of a spring in its step following Fed Chairwoman, Janet Yellen’s speech on Friday. Although she didn’t say anything new, she reminded markets that she expects rates to rise in 2015.

Tomorrow’s US Durable Goods report (Forecast-0.5%, ex transportation 0.5%) could set the tone for the US dollar for the balance of the week. USDCAD traders will focus on the Bank of Canada statement on Wednesday which should not produce any surprises.

USDCAD technical outlook

The intraday USDCAD technicals are bullish with the break above 1.2280 targeting major resistance in the 1.2350-70 area. If this area is breeched, a move to 1.2490 is likely. A break of 1.2280 would lead to 1.2240 and then 1.2180.  For today, USDCAD support is at 1.2270 and 1.2240. Resistance is at 1.2320 and 1.2350

Today’s Range 1.2270-1.2320

Chart: USDCAD 4 hour with Fibonacci levels shown