USDCAD Overnight Range 1.2439-1.2495
USDCAD traders were rather indecisive overnight. The Loonie bounced around in a fairly tight range, torn between USDCAD selling on dollar weakness vs. G-10 currencies and EURCAD demand stemming from the rise in EURUSD. However, EURUSD has given back all of the overnight gains following today’s Jobless claims data and USDCAD is close to the overnight peak.
EURUSD is the story. The German bund market is on fire with 10 year yields soaring. The bund sales have led to demand for EURUSD which has turned the short term technicals bullish. The break of the 38.2 % Fibonacci retracement level of the Dec.14-Mar.15 range at 1.1285 targets 1.1775, the 61.8% level.
In Asia, weaker than expected Australian data pushed AUDUSD lower. Over in Japan, comments from a BoJ board member stating that “excessive JPY strength has been corrected” undermined USDJPY.
There isn’t any additional US data to influence trading today but Canada’s Ivey PMI release will create excitement depending on the size of the miss from the 55.5 forecast level. For the most part, traders will mark time until tomorrow’s payrolls reports.
USDCAD technical outlook
The intraday USDCAD technicals are modestly bullish with today’s move back above 1.2490 which targets a re-test of the 1.2550 level. A failure to extend gains above 1.2550 suggests further 1.2410-1.2550 range trading. For today, USD Support is at 1.2460 and 1.2420. Resistance is at 1.2510 and 1.2530
Today’s Range 1.2460-1.2530
