USDCAD Overnight Range 1.3250-1.3310  

Yesterday’s US dollar gains vanished rapidly following the release of the FOMC minutes and continued during the Asian session.  The FOMC minutes failed to inject any fresh insight into the December rate hike debate which forced weak, intraday US dollar long positions to liquidate. Kiwi and Aussie dollars were the best performing currency pair.  The Bank of Japan left rates unchanged and Governor Kuroda was reasonably upbeat about the economy.   USDJPY barely budged.

European traders walked in, saw how high EURUSD had risen and proceeded to sell-it.  That move was completely reversed a few hours later. GBPUSD got whacked on a dip in Retail Sales but has since recovered.

USDCAD rejected gains above 1.3360 ahead of the FOMC minutes and was probing support in the 1.3250-60 area when New York opened. Traders noticed WTI prices dipping from the overnight peak of $41.05/ barrel and bought USDCAD. Canadian Wholesale Sales data missed forecasts which helped the negative sentiment on the Loonie. The US Jobless Claims report was right on forecasts and he release of the ECB minutes did not provide any drama

USDCAD traders will be looking ahead to tomorrow’s CPI and Retail Sales data despite oil price direction being the most important factor at the moment.

USDCAD technical outlook

The intraday USDCAD technicals are bearish following the break of the minor uptrend line from November 4, at 1.3310.  The subsequent drop tested support in in the 1.3240-60 area, which held.  If it breaks, it will lead to a further drop to the 1.3190-1.3210 area.  A break above 1.3320 will shift the focus back to the top.  For today, USDCAD support is at 1.3250 and 1.3210. Resistance is at 1.3290 and 1.3310

Forecast Range for the day 1.3250-1.3310

Chart USDCAD 1 hour