USDCAD Overnight Range 1.3331-1.3434
USDCAD opened in New York at 1.3430 with a bullish bias due to a drop in commodity prices including oil.That changed when Bloomberg flashed headlines reading ” Saudi Gov’t ready to do what it takes for stable oil market” and “Saudi ready to cooperate with Opec, Non Opec for stable prices”.USDCAD plunged down to 1.3335 from 1.3430 and WTI soared to $42.50 from $40.45/barrel. Since then, WTI has retreated from its intraday peak and USDCAD has drifted higher.
Overnight was a different story. Thoughts of a quiet Asia Monday in FX land vanished with a 3.5% drop in copper prices from Friday and another drop in oil prices. Aussie, Kiwi and the Loonie were all sold although the moves may have been exaggerated a tad due to the reduced liquidity as Japan was closed.
The European session was a tad more subdued and EURUSD drifted off the Asia lows, helped by a dose of profit taking and better-than-expected Eurozone PMI’s.
Commodity price volatility and US PMI’s will be in focus today although the looming Thanksgiving holiday in the US may diminish trading activity.
USDCAD technical outlook
The intraday USDCAD technicals are bullish while trading above 1.3330, the base of a minor uptrend line from Thursday’s 1.3250 low. In addition, the decisive break above the 1.3350-70 resistance area argues for further gains to test major resistance in the 1.3450-70 zone. The short term uptrend is intact while trading above 1.3240. For today, a break below 1.3340 will lead to 1.3290 and then 1.3240. Above 1.3340 suggests another topside move.
Forecast Range for the day 1.3330-1.3390
Chart USDCAD 4 hour