USDCAD Overnight Range 1.2315-1.2380
The US dollar is on a tear, climbing across the board, while ignoring a worse than expected Durable Goods report. There is no specific catalyst for the move and EUR and CHF are the biggest losers. The dollar gains are despite news that a Greece/EU deal is expected by Wednesday and that the ECB bumped up the limit on emergency funding to Greek banks. Positive data in the form of better than expected PMI’s from Germany and the Eurozone were also ignored
However, those expecting EURUSD to rally on the news were left scratching their heads and marking down position values. EURUSD dropped without a discernable reason and has continued to fall since New York walked in. Some believe that since EUR is a funding currency it gets sold in periods of risk seeking. Others think that it was merely due to the rebuilding of long US dollar positions.
The rising US dollar has lifted USDCAD which has tested resistance in the 1.2380 area. EURCAD selling and WTI oil prices holding steady in the $60.00/bbl area have helped to slow the dollar’s rise but the Loonie is still vulnerable to further weakness.
USDCAD technical outlook
The intraday USDCAD technicals are bullish. The break above 1.2290 yesterday snapped a two week downtrend with the current minor uptrend intact while trading above 1.2320. A break of resistance in the 1.2350-70 area will extend gains to 1.2420. For today, USD support is at 1.2320 and 1.2280. Resistance is at 1.2360, 1.2380 and 1.2410
Today’s Range 1.2320-1.2380
Chart: USDCAD hourly with uptrend line noted