USDCAD Overnight Range 1.3252-1.3292
New York traders ended a sleepy overnight session by selling EURUSD which in turn gave the US dollar a bit of bid against the rest of the majors. It is almost a reluctant rally since there doesn’t appear to be much urgency in the demand and volumes are said to be lower than usual.
It was extremely quiet in overnight FX markets. Weaker than expected China CPI and soft Japanese Current Account data were completely ignored in Asia. Europe walked in, took their cue from the Asia activity and found other ways to amuse themselves.
Global equity indices were all modestly lower (except Nikkei which was a few ticks higher) due to the prospect of a Fed rate hike in December but the weakness was ignored by currency traders.
The oil market has been garnering a lot of press in the past few days in anticipation of Opec’s December 4th meeting. None of the news is positive in the short term as prices are expected to remain depressed well into 2016 while over-production continues. However, downside momentum seems to disappear on the approach to the $41.50-$43.00/barrel support area.
The Canadian dollar remains at the mercy of general US dollar direction and oil prices. WTI prices have slipped to $43.68 from the overnight high of $44.44 which has supported USDCAD.
USDCAD technical outlook
The intraday USDCAD technicals are bullish. The intraday uptrend from October 12 at 1.3105 and again from November 4 at 1.3195 remain intact. The series of ”higher lows” combined with a bullish flag pattern project additional gains to 1.3455 (2015 peak) on a break above 1.3300. For today, USDCAD support is at 1.3240 and 1.3200-10. Resistance is at 1.3290-1.3300 and 1.3370.
Forecast Range for the day 1.3240-1.3310
Chart USDCAD 4 hour