One Direction is and English-Irish pop band and heart-throbs for teenage girls everywhere.  They shouldn’t be confused with “Two Direction” which is the existing USDCAD trading set-up.

USDCAD selling on the back of broad US dollar weakness is being offset by USDCAD demand due to falling oil prices. The result has been a lot of back and forth price actions inside a 1.3320-70 range.

Overnight Ranges

	Close	Open
	24-Mar	27-Mar	High	Low
USDCAD	1.3354	1.3325	1.3368	1.3323
EURUSD	1.0795	1.0867	1.0872	1.0817
USDJPY	111.15	110.29	111.04	110.13
GBPUSD	1.2487	1.2592	1.2590	110.1300
USDCHF	0.9907	0.9845	0.9897	1.2483
AUDUSD	0.7621	0.7634	0.7637	0.7614
NZDUSD	0.7029	0.7057	0.7056	0.7009
USDMXN	18.7579	18.8310	18.8324	18.7573
WTI	48.08	47.56	48.25	47.37

 

WTI dropped from $48.25 to $47.37 before inching back to $47.67 at the New York open following what traders perceive to be a disappointing Opec meeting on the weekend. A joint committee of Opec and non-Opec members met in Kuwait and agreed to “review the oil market conditions and revert, in April 2017 regarding an extension of the production adjustments.”

There isn’t any data of note from the US or Canada leaving FX markets to take direction from Trump headlines, oil price movements and equities. US equity futures are now in the red suggesting a lower opening for Wall Street. That could mean added US dollar losses vs. the majors. The US dollar index is bearish following the break below support at 99.20 and it is targeting 97.84, keeping the dollar bearish view intact.

Asia traders sold dollars when President Trump’s Healthcare bill never even made it to a vote.

USDJPY got pounded. It opened at 111.04 and dropped to 110.13.  The healthcare bill failure, lower equity prices and dip in US Treasury yields fostered a risk adverse environment.

Kiwi outperformed Aussie. NZDUSD climbed steadily from 0.7009 to 0.7056 while AUDUSD inched higher in a choppy fashion, rising from 0.7614 to 0.7637.

EURUSD accelerated higher after breaking resistance at 108.20.  The rally hit a ceiling at 1.0872.  A decisive break above this level targets 1.0950.  EURUSD was supported by broad US dollar weakness, strong German IFO economic confidence data, an election win by Angela Merkel’s CDU party in the Saarland state and another Bundesbank official making hawkish noises about ECB policy.

Sterling rallied on the back of the weak greenback, perhaps seeking a new ledge to jump off when Article 50 is triggered on Wednesday. GBPUSD is trading like Brexit negotiations will like unicorns and rainbows rather than a pack of pit-bulls on a bone.

There isn’t any data of note from the US or Canada leaving FX markets to take direction from Trump headlines, oil price movements and equities. US equity futures are now in the red suggesting a lower opening for Wall Street. That could mean added US dollar losses vs. the majors. The US dollar index is bearish following the break below support at 99.20 and it is targeting 97.84, keeping the dollar bearish view intact.

USDCAD Technical outlook:

The intraday USDCAD technicals directionless inside a 1.3310-80 range, although the short-term trend is bullish while prices are above 1.3310.  A break above 1.3380 puts 1.3535 in play while a move below 1 .3310 targets key support in the 1.3240-70 zone.  For today, USDCAD support is at 1.3320 and 1.3280.  Resistance is at 1.3380 and 1.3420

Today’s Range 1.3310-90