USDCAD Overnight Range 1.2375-1.2395    

The USDCAD rally has stalled following yesterday’s spike to 1.2420 and since then it has drifted aimlessly within a narrow band. Today’s US data releases (PCE, consumption and Jobless Claims) were mostly in-line with expectations.Taken together the data doesn’t undermine the September rate hike argument but it isn’t a stellar endorsement for a move either. It was just “meh”.

It was an extremely quiet trading session in Asia as traders were sidelined awaiting news on the EU/Greece deliberations. That was the story in Europe as well although there were bouts of volatility in EURUSD and USDJPY.  EURUSD spiked nearly 0.0050 points on a headline suggesting a deal was possible.  That move was short lived on a contradictory headline.

USDCAD remained trapped within a 1.2370-95 range overnight but still well off yesterday’s lows, in part due “risk-off’ sentiment pervading from the EU and Greece. The lack of economic data and the rising risk that Greece bails on the Eurozone and their debts with payment deadlines looming has left many traders sitting on their hands.

USDCAD technical outlook

The intraday USDCAD technicals are bullish while trading above 1.2330 and looking for a break above resistance at 1.2420 to extend gains to 1.2460.  A move below 1.2320 would lead to a test of 1.2270. For today, USDCAD support is at 1.2370 and 1.2330.  Resistance is at 1.2400, (100 day moving average) 1.2420 (yesterday’s high) and 1.2460.

.Today’s Range 1.2340-1.2410

Chart: USDCAD daily with moving averages