USDCAD Open 1.0488-93 Overnight Range 1.0486-1.0540
Please see original post on Saxo Bank’s Trading Floor
The USDCAD shifted gears in Europe, dipping below 1.0530 and then plunging as stop losses were triggered on the break of support at 1.0520, touching 1.0485 before the move stalled. The catalyst would appear to be another foray into a risk seeking environment on better than expected China data ( Services PMI 52.8 vs. previous 51.8). The Euro zone data , Q2 GDP and markit services PMI were better than expected. Asian and European equity indices (except for the Nikkei) were all lower as are NY equity index futures. Gold is $1,402.70 while WTI is 1.07.80
Looking ahead, today’s US data which includes Beige Book, merchandise trade and Challenger job cuts should give the US dollar some support as will the proximity of the technical 4.0440-80 support zone.
The short term USDCAD technicals are bearish wile trading below 1.0510 but need a break of 1.0470 to extend losses to 1.0440. A move back above 1.0520 will lead to further 1.0470-1.0570 consolidation. For today, USD support is at 1.0470 and 1.0440. Resistance is at 1.0510 and 1.0530
Today’s Range 1.0470-1.0520