Overnight Range 1.34961.3563
It has been quite a week for US dollar bulls. The greenback has made impressive gains across the G10 spectrum since last Friday’s close. Only the Canadian dollar has managed to squeeze out a gain and that gain is tenous, at best.
In Asia, USDJPY accelerated higher following the break of resistance at 110.00 near the end of the New York session. The rally peaked at 110.90 when Europe starting trading and the currency pair slipped back to 110.40 by today’s New York open.
The Bank of Japan’s assertion that it would buy “unlimited” bonds in an attempt to control the yield curve and Fed Chair Yellen’s non-doveish testimony on Thursday underpinned USDJPY.
NZDUSD outperformed AUDUSD. Kiwi ticked higher on pre-weekend profit-taking while AUDUSD remained heavy.
In Europe, the 10-consecutive day EURUSD slide is notable in that it has never occurred since the dawn of the single currency in 1999.
EURUSD traded in a narrow 1.0580-1.0630 range overnight. ECB President Mario Draghi said today that monetary policy support will persist and that ECB’s policies have underpinned the fragile recovery in the Eurozone. The remarks did not have any effect on EURUSD trading.
Sterling slid in Asia but enjoyed a bout of profit taking during the European session.
Oil price movements were ragged. WTI bounced between $44.80-$45.20 in Asia, dropped to $44.52 in early European trading and then bounced back to $45.54 by the time New York opened. Constantly shifting sentiment about an Opec production cap agreement is behind the price swings.
USDCAD has had a wild 20 hours. It was trading at 1.3403 at 9:30 am yesterday and hit 1.3563 at 9:30 pm EST, during the Asia session. Europe sold it and it is currently trading at 1.3497. The move coincides with general US dollar selling.
USDCAD technical outlook
The intraday USDCAD technicals flipped back to bearish following this morning’s move below 1.3530. A move below minor support at 1.3470 will lead down to post-election uptrend support at 1.3400. A decisive move below 1.3400 will extend losses to 1.3340. The long-term uptrend from the May low remains intact while prices are above 1.3020. For today, USDCAD support is at 1.3460 and 1.3400.
Resistance is at 1.3540 and 1.3570.
Today’s Range 1.3420-1.3520
Chart: USDCAD 30 minute