USDCAD Overnight Range 1.2575-1.2662        

USDCAD climbed in early New York trading on the back of a rising US dollar vs. the majors and on anticipation of a weak Canadian employment number. News that Canada created 28,700 dropped USDCAD from 1.2662 to 1.2615 in a second, despite the fact that all the gains were in part-time jobs. At the same time, the US dollar started to give back some of the overnight gains, likely due to profit-taking and Loonie extended its gains.

The main FX theme overnight was US dollar demand and the buying seemed insatiable.  Softer than expected Australian Homes data undermined AUDUSD, Kiwi was offered in sympathy and USDJPY failed to extend gains on the break of resistance at 120.60.  It was a different story in Europe.  The US Dollar was in demand across the G-10 and EURUSD broke below 1.0600 again.  A story in the UK paper “The Times” reported that Finnish documents said that the EU had drawn up secret plans to kick Greece out of the Eurozone didn’t help. GBPUSD continues to churn due to the election uncertainty and the strong US dollar.

USDCAD technical outlook

The intraday USDCAD technicals are bullish while trading above the 1.2570-80 area which is currently being tested. If broken, it could lead to another drop to 1.2360 although there is plenty of support ahead of that level.  If the 1.2570-80 level holds, further gains back to 1.2660 and then 1.2720 are in the cards. For today, USDCAD support is at 1.2570, 1.2540 and 1.2510.  Resistance is at 1.2620, 1.2660 and 1.2710

 Chart: USDCAD 4 hour