USDCAD Overnight Range 1.4121-1.4218
The start of this week’s trading had it all. Asia was up, Europe was down and for the most part, New York trading has been sideways.
New Yorkers were distracted and still talking about the weather and the 25-30 inches of snow that dumped on them. The storm was nasty enough that in the “Home of the brave and the Land of the Free”, travel was banned. Not just discouraged, but banned.
Asia trader’s started the week on an optimistic note with USDJPY firmer, equities rising and oil firmer. AUDUSD shrugged off softer-than-expected NAB business survey data which helped NZDUSD climb.
The optimism faded in Europe. Oil declined in part due to traders being sceptical about the sustainability of last weeks’ bounce. A soft German IFO survey and the pending FOMC meeting on Wednesday supported the US dollar.
USDCAD is likely to spend this week consolidating last week’s losses. Stubborn long dollar positions and rising sentiment that the Bank of Canada is on hold for six months or longer will cap gains while the prospect of a hawkish FOMC statement and oil price resistance at $33.00/b should limit the downside.
USDCAD technical outlook
The intraday USDCAD technicals are mixed with a negative bias following last weeks’ decline with previous support at 1.4340 reverting to resistance. There is a weak downtrend intact while trading below 1.4220 which targets a retest of the recent 1.4120 area. A break above 1.4320 suggests further gains toward 1.4340 while a break of 1.4120 opens up a move to 1.4000.
Today’s Range 1.4140-1.4220
Chart USDCAD hourly