USDCAD Overnight Range 1.2903-1.2951
US dollar trading has been mixed since New York started. EURUSD added to its European session losses while GBPUSD extend gains in pre-Jackson hole position adjusting.
It was another overnight session where FX action was as exciting as watching paint dry. A lack of major economic data releases and uncertainty ahead of the Janet Yellen speech on Thursday evening at Jackson Hole, was all the excuse traders needed to get back to playing PokemonGO.
USDCAD jumped in the Asia session following the release of the API Crude Stocks report showing a rise in inventories of 4.464 million barrels. The previous week had declined by 1.0 m/b. That rally ended when Europe walked in and USDCAD retreated back to Tuesday closing level.
AUDUSD was under pressure in Asia due to general US dollar strength but it too, rallied during the European session. USDJPY see-sawed in a tight 100.00-100.25 range.
All of the FX moves are occurring in an information vacuum and in thin trading conditions.
The wait for Ms. Yellen’s speech tomorrow, will ensure a dull day today. USDCAD traders will be waiting to see how the oil markets react to today’s EIA Crude stocks report. In addition, an earthquake in Italy and a US/Turkey offensive in Northern Syria will provide some distractions.
USDCAD technical outlook.
The intraday USDCAD technicals have flipped back to bullish, supported by the move above 1.2930 and by the minor uptrend from the 1.2762 low, last Thursday. A break above 1.2980 is required to extend gains to the 1.3050-1.3070 resistance area. A move below 1.2850 argues for further weakness to 1.2760. In addition, the uptrend line from the June low of 1.2640 remains intact while prices are above 1.2760. For today, USDCAD support is at 1.2905 and 1.2880. Resistance is at 1.2950, 1.2980 and 1.3010.
Today’s Range 1.2910-80
Chart: USDCAD daily