Loonieviews April 2, 2013

April 2, 2013
USD/CAD Open 1.0126-31 Overnight Range 1.0126-1.1069

The Canadian dollar chipped away at US dollar support in the 1.0140-50 area and it finally crumbled during the European session which sets up a test of 1.0110. Overnight, the AUD/USD got a boost on confirmation that the RBA would leave rates unchanged. Trading was light and uninspired ahead of the BOJ, ECB, and BOE meetings this week and Friday’s US employment data report. The Nikkei was down 131.59 but the Hang Seng and the ASX 200 rose. European equity indices were all higher and NY equity index futures re up. Gold is $1,597.90 and WTI oil is $97.99

The short term USD/CAD technicals are bearish. The break of support in the 1.0140-50 area suggests a test of 1.0080. The daily USD/CAD chart shows that the US dollar is in a downtrend channel bound by 1.0220 on the top and 1.0110 on the bottom. Furthermore, the break of 1.0140 is the 38.2% retracement of the 0.9930-1.0335 range seen since Jan 9, 2013. The break argues for a move to 1.0080 (50% retracement) then 1.0020 (61.8% retracement. For today, USD support is at 1.0110 and 1.0080. Resistance is at 1.0140 and 1.0170

Daily USD/CAD chart with Fibonacci

And in other news, Lego has pulled its “Jabbas Palace” off the market because a Turkish group in Austria said that it was “anti-Muslim”. Hasbro is now worried about the status of G.I Joe.

Today’s Range 1.0110-50

Michael O’Neill


Categories FX, Foreign Exchange, Currency, Canadian Dollar

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