USDCAD Overnight Range 1.2600-1.2680
USDCAD hit resistance at 1.2680 overnight and has been tumbling ever since, touching 1.2500 just recently. It did not move in a vacuum but as part of a widespread US dollar retreat as a lack of fresh stimulus led to profit-taking.
Overnight, it was a different tale. The US dollar stormed higher in Europe despite a lack of a clear catalyst for the move. The US gains were impressive and across the board, gaining nearly 1% vs. EUR and over 1% vs. NZD and AUD. In a speech, Dallas Fed Chairman, Richard Fisher, his last as a member of the Fed, called for the FOMC to raise early.While nothing new, in the face of last Friday’s strong employment report and the start of QE in the EU, traders started buying US dollars again. The break of key support levels (107.60) in EURUSD point to further losses ahead.
However, so far in New York trading, EURUSD is about where it started while the dollar lost ground against GBP, JPY CAD and AUD
USDCAD technical Outlook
The intraday USDCAD technicals are bullish following the break of resistance at 1.2580 and again at 1.2620. However, it appears that resistance in the 1.2660-80 has contained the rally and until 1.2800 is decisively broken the current USDCAD 1.2360-1.2680 range remains intact.