USDCAD Overnight Range 1.3506-1.3563
USDCAD extended yesterday’s losses overnight thanks to continued gains in oil prices. This mornings US Q4 GDP data was revised higher to 1.0% from the previous 0.7% although a drop in consumer spending took some of the shine off of the result. Still it was enough to drive EURUSD below the sticky 1.1000 support area.
The G20 meeting in Shanghai kicked off today and the headlines were filled with soothing noises from central bankers. China’s PBOC governor said that the economy is strong and that it still has room for monetary policy moves. Japan’s BoJ governor, Kuroda said that they wouldn’t cut interest rates deeper in a steady path. The Bank of England’s Mark Carney, said that central banks haven’t run out of ammunition to boost growth and inflation but it can only succeed if governments deliver promised economic overhauls.
Against the backdrop of that G20 wisdom, G10 currencies traded in fairly narrow bands overnight, with the exception being GBPUSD. GBPUSD tried to recover above 1.4000 but European sellers came out of the woodwork and drove it back below the overnight low. EURUSD, after struggling to gain traction below 1.1000 tried the topside but once again the move was contained in the 1.1060 area.
Oil prices extended yesterday’s gains. News that Venezuela has got Russia and Saudi Arabia to agree to meet, mid-March, to discuss price stability is behind the move.
USDCAD technical outlook
The break below key support in the 1.3640-60 area has driven USDCAD down to major support in the 1.3460-1.3500 zone representing an uptrend line from May 2015 and the December break-out level. A move below 1.3460 would lead to the 200 day moving average at 1.3269. The Intraday technicals are bearish while trading below 1.3560 looking for a break of 1.3500 to test 1.3460. Above 1.3560 should lead back to 1.3640
Forecast Range for the day 1.3490-1.3590
Chart USDCAD 4 hour