September 17, 2012
|USD/CAD Open 0.9723-28 Overnight Range 0.9697-0.9725
The Canadian dollar’s Friday retreat due to position squaring ahead of the weekend pushed the US dollar back above 0.9705 where it stayed throughout the overnight session. Asian trading was lighter than normal with Japan on holiday however traders will keep an eye on the escalating trade tensions between China and Japan, sparked by a dispute over uninhabited rocks. A lack of meaningful developments from the EU Finance Ministers meeting kept Euro zone trading sidelined. The lack of meaningful US data releases today may see the further sideways trading. WTI oil is $98.94 and gold is $1,772.20 European equity indexes were all in the red as are NY equity indice futures
The USD/CAD technicals are bearish while trading below 0.9920 on a daily chart. However, the short term charts suggest that the USD/CAD trend is bullish for a test of 0.9750, whilst trading above 0.9705, although the 0.9720-25 area is a tad sticky. For today, USD support is at 0.9690, 0.960 and then 0.9640.
Resistance is at 0.9720, 0.9750 and 0.9780.
The Canadian dollar is likely to stay within the current 0.9690-0.9750 band today as markets continue to assess the impact of both QE3 and the ECB’s bond buying program. Look to sell USD/CAD around 0.9740, stop above 0.9780 for a retest of 0.9640 this week.
And in other news, a Quebec Superior Court judge ordered a Montreal restaurant, Fukyu Sushi to remove a sign with name of the restaurant as it was considered offensive. In a sense, the judge was saying ….. Oh well you can guess the rest.
Today’s Range 0.9690-0.9750