USDCAD Overnight Range 1.0501-1.0520
See original post on Saxo Bank’s Trading Floor
The USDCAD is starting this sweltering August Monday (humidex 29C in Toronto at 6:30 am) with a modestly bid bias, but facing minor resistance at 1.0520. This level is likely to hold until the release of today’s US July Durable Goods report (forecast down 4 percent, ex transportation percent) . A worse than expected number may lead to US dollar selling back to minor support at 1.0490.
Syria is being condemned for a reportedly chemical weapons attack on the rebels which many believe could lead to some sort of US intervention, possibly this week. If so, the US dollar would be in demand as a safe haven and the Canadian dollar would suffer.
The short term USDCAD technicals are bullish. The break of the 1.0440-80 resistance zone suggests a short term bottom is in place around 1.0320 with a test of 1.0660 in the cards. For today, USD support is at 1.0500, 1.0490 and 1.0470, Resistance is at 1.0520, 1.0550 and 1.0610
Today’s Range 1.0480-1.0550