USDCAD Overnight Range 1.2280-1.2345
Today’s US PPI data release was a non-event while the Michigan Consumer Sentiment wasn’t much better although it did give USDCAD a lift. The Loonie continues to see-saw within a 1.2260-1.2360 trading range which will likely hold until Wednesday’s FOMC meeting.
The USD is ending the week with a bit of a firm tone.The Asian session was very quiet although both Aussie and Kiwi remained offered. The US dollar strengthened in Europe. On Greece news and government comments. Yesterday’s news that the IMF Greece negotiating team quit the table was followed with a report in Germany’s Bild tabloid that the German government was no longer ruling out a default. EURUSD was sold. To make matters worse, Angela Merkel started talking about the risks of a strong EUR fueling EURUSD sales. Traders didn’t like those remarks either.
USDCAD trading remains at the mercy of US dollar direction although EURCAD selling will take some of the sting out of US dollar demand as will firm oil prices. The Saudi’s are reportedly ready to raise production which, if you believe that there is an oil glut, can’t be a good thing for prices.
.USDCAD technical outlook
The intraday technicals are bullish while trading above 1.2280 looking for a break of 1.2360 to extend gains above 1.2390 to 1.2450. A move below 1.2280 points to 1.2240 and then 1.2210.
The long term technicals are bullish. USDCAD is in an uptrend since September 2014 which remains intact while trading above the 1.2040 area. Major resistance is seen at 1.2800-20 which represents a triple top.
Today’s Range 1.2280-1.2360
Chart: USDCAD weekly with long term uptrend no