USDCAD Overnight Range 1.2764-1.2814
The US dollar is in retreat, albeit on lower than usual volumes as traders adjust their positions ahead of Wednesday’s FOMC meeting. This meeting appear to have an exaggerated sense of importance due to anticipation that the statement drops the word “patience”. That change is believed to be the signal that rates will rise in June. Pshaw! It just means that that the Committee has run out of patience with that word.
Elsewhere, early AUD and NZD strength on optimistic remarks by China’s Premier, didn’t last. A negative AUDUSD forecast by Blackrock Iinvestment management helped undermine AUDUSD. Japan was on hold until tonight’s BoJ press conference. In Europe, EURUSD is heavy but off its lows while the German stock market (DAX) is on a tear.
The Loonie ignored additional oil price weakness and eked out gains on the back of general US dollar weakness. Don’t be fooled. The recent price action and break of key resistance levels plus the widening of CAD/US interest rate differentials and soft domestic data have hung a 1.3050 sign on USDCAD.
USDCAD technical Outlook
The intraday USDCAD technicals are bullish while trading above 1.2750 with Friday’s break above resistance at 1.2800 targeting a run to 1.3050. A move below 1.2740 would extend losses to 1.2680. For today, USD support is at 1.2760 and 1.2740. Resistance is at 1.2800 and 1.2820
Today’s Range 1.2750-1.2820