USDCAD Overnight Range 1.3017-1.3081                

USDCAD drifted higher overnight due to on-going concerns that oil prices could fall further and a modestly firmer US dollar due to the strong employment report on Friday. However, that tune changed in early New York trading.  WTI bumped higher and USDCAD dipped back to intraday support in the 1.3010-30 area. Today’s move is also evidence that USDCAD is really directionless although the bearish bias remains intact.

Holidays in China, Hong Kong and a few other Asia centers led to a relatively slow overnight session.  AUDUSD faded on a poor Retail Sales report (Actual 0.0% vs. forecast 0.4%) and traders also debated how the Reserve Bank of Australia will react at tomorrow’s interest rate meeting. The US is on record for complaining about the RBA governor’s use of verbal intervention and the RBA governor cannot be happy with the recent strength in the currency. No rate cut action is expected.

EURUSD has drifted lower throughout the European session with traders ignoring ECB speakers. GBPUSD never recovered from Friday’s New York plunge and bounced around within a 1.4190-1.4236 range.

FX trading shouldn’t deviate far from the overnight ranges due to a lack of data. The Reserve Bank of Australia meeting will be the highlight in Asia markets tonight.

USDCAD technical outlook

The intraday USDCAD technicals are bullish while trading above 1.3020 but need to overcome downtrend resistance in the 1.3100-10 are to extend gains to 1.3150.  A break of 1.3150 will lead to a test of the January downtrend line at 1.3190 which guards prior multi-bottom/tops in the 1.3210-40 zone.  However, a decisive move below the 1.3100-10 area opens up a re-test of the 1.2855 low. For today, USDCAD support is at 1.3030 and 1.2990.  Resistance is at 1.3090 and 1.3140

Today’s Range 1.3110-1.3190

Chart: USDCAD  15 minute