USDCAD Overnight Range 1.1993-1.2070          

US GDP lived up to expectations that it would be weak. It was and the US dollar is getting spanked again. Annualized Q1 GDP was -0.2% vs. forecasts for a gain of 1.1% with part of the weakness being blamed on the strong US dollar. USDCAD was flirting with 1.2055 prior to the number and is currently probing support at 1.2005. EURUSD is testing the 38.2% Fibo retracement of the 2015 range.

The US dollar continued to drift lower overnight on anticipation that the spate of weak US data would result in a weaker than expected GDP report this morning and a downgraded outlook in this afternoons FOMC statement. The news from Greece was a tad more promising as well which may have helped to lift EURUSD above 1.1000.

In Asia, USDJPY defied the dollar weakness trend and climbed to 119.40 from 118.75. However, Aussie and Kiwi didn’t and they both declined. Tonight’s RBNZ rate decision and statement may add to Kiwi’s woes if the Central Bank is a doveish as expected.

USDCAD technical outlook

USDCAD is in a downtrend while trading below 1.2080, supported by the break of support at 1.2050 which is now targeting major support in the 1.1970-90 area. A move below here and USDCAD will drop to 1.1720.  A recovery above 1.2050 argues for some 1.1990-1.2080 consolidation

Today’s Range 1.1990-1.2080

Chart : USDCAD hourly