USDCAD Overnight Range 1.2410-1.2484

The Loonie has held on to most of yesterday’s gains despite broad-based US dollar strength against the majors. A sleepy European session was jolted awake when Mario Draghi started speaking. EURUSD bobbed and weaved within a 1.1000-1.1100 during his remarks even though he didn’t seem to say anything EUR negative.

Earlier, US jobless claims provided a disappointing result, rising to 320K but traders seemed to have shrugged off the result.

The Canadian Ivey Index rebounded to 50.8 from 42.8 in January but hasn’t really impact USDCAD trading. The recent series of lower, highs in the daily ranges combined with a neutral BoC and firmer oil prices in an environment where traders are already well long USDCAD argues for another test of the 1.2340-60 support area. However, that move will be on hold until after tomorrow’s US payrolls data.

USDCAD technical Outlook

The intraday USDCAD technicals are bearish below 1.2490 and looking for a break of minor support at 1.2410 to extend losses to 1.2340. A break of this level puts 1.2060 in play. A move above 1.2490 argues for more 1.2400-1.2550 range trading

Today’s Range 1.2420-90

Chart: USDCAD hourly with post BoC drop shown