USDCAD Overnight Range 1.2306-1.2423
USDCAD smashed through what should have been strong resistance in the 1.2360-90 area and has its sights set on the 1.2550 zone on the strength of a slightly better-than–expected Durable Goods Report. The ex-transportation component beat the forecast while the headline number was as expected. That report combined with both Friday’s CPI data that indicated rising inflation and Janet Yellen’s opinion of a 2015 rate hike fueled US dollar buying after the long weekend. A delayed reaction to yesterday’s Greece statement of not being able to make the IMF June payment had given the dollar a bid tone prior to today’s data.
USDJPY headed higher after finally breaking out of a two month range while EURUSD shattered support at 1.1035 and again at 1.0950
The Canadian dollar weakness is entirely a factor of general US dollar strength. Tomorrow’s Bank of Canada interest rate statement will not be able to turn the tide of dollar gains but may serve to slow the rally as will stable WTI prices above $57.90/bbl
USDCAD technical outlook
The intraday USDCAD technicals are bullish with the break above 1.2280 with today’s break of major resistance in the 1.2370-90 zone pointing to a test of the 1.2550 zone. For today, USD support is at 1.2410, 1.2380 and 1.2360. Resistance is at 1.2450, 1.2490 and 1.2510
Today’s Range 1.2410-1.2490
Chart: USDCAD 4 hour with new target