USDCAD OPEN 1.0426-30 Overnight Range 1.0392-1.0447
original post on Saxo Bank Trading Floor
The USDCAD continues to grind higher overnight testing the first key resistance level of 1.0440, which held. The Canadian dollar is being sold, in part due to softer commodity prices which have impacted both Aussie and Kiwi and on FOMC minute concerns.
Today’s FOMC minutes are being viewed as some sort of window to the future when in reality they are a 30 day old discussion of even older economic data and events. Anyone looking for any definitive statements pertaining to the start of tapering will be sadly disappointed. More than likely, FX markets have probably gotten all lathered up as thin markets made currency moves look frothier than usual. Markets already know, from various Fed speakers, post FOMC, that although a September start to tapering is possible, absolutely nothing is certain.
The short term USDCAD technicals are bullish while trading above 1.0420, looking for a break above the 1.0460-80 resistance zone to extend gains to 1.0520 and then 1.0550. Below 1.0420 suggests further 1.0360-1.0450 consolidation.
Today’s Range 1.0370-1.0460