USDCAD Overnight Range 1.3690-1.3790
Trader’s got to their desk’s on Monday morning, liked what they saw in the world and proceeded to buy commodity bloc currencies. USDCAD pushed below support in the 1.3720-50 zone fueled by further gains in oil prices which have climbed from a low of $29.50 in Asia to $31.50, currently. The oil strength is because traders still expect some sort of Russia-Opec production deal, encouraged by comments by the Russian oil minister over the weekend.
Asia had a positive session. Equity indices rose supported by news that China sacked the head of the China Securities Regulatory Commission and replaced him with the former head of the Agricultural Bank. That positive sentiment led to gains in AUDUSD and NZDUSD as well.
GBPUSD dropped 2% overnight, to 1.4120, and is starting the New York session as the worst performing currency in the G-10. That’s understandable. Even though British PM Cameron negotiated concessions from the EU, the “Brexit” referendum is set for June 23, 2016 and the issue is still up in the air.
Although GBPUSD was the main focus in Europe, EURUSD had its moments and traded lower, undermined by weak Eurozone PMI data and profit-taking in EURGBP. EURUSD has broken support in the 1.1030-50 area, which provides scope for further losses to 1.0800
USDCAD technical outlook
The intraday USDCAD technicals are bearish while trading below 1.3820. Today’s break of minor support at 1.3730-50, should extend losses to 1.3650. Only a move above 1.3820 negates the downside pressure.
Longer term, the USDCAD uptrend from June 2015 remains intact above the 1.3610-30 area. USDCAD is in a down trend channel, intact since January 21/16, bordered by 1.3500 on the bottom and 1.3850 on the top. For today, USDCAD support is at 1.3690 and 1.3650. Resistance is at 1.3760 and 1.3790
Forecast Range for the day 1.3670-1.3760
Chart USDCAD 4 hour