USDCAD Open 1.0294-99 Overnight Range 1.0294-1.0330
The USDCAD continued yesterdays afternoon swoon overnight following the official announcement that the US government was being reopened and that the risk of a default was pushed back until February 2014. The US dollar dropped vs. the majors and in that context, the Canadian dollar rally was a tad less than stellar. In other news, China’s Dagong rating agency downgraded US debt to A- from A, likely on a memo from the President of the Peoples Republic of China, mostly to register their annoyance at the US politicians. ..
The short term USDCAD technicals are bearish while trading below 1.0315. The currency pair is approaching support the first level of support at 1.0270 which could cause the down move to stall. Longer term, the USDCAD rate is approaching decent uptrend support in the 1.0240-70 zone which US dollar bulls will view as a buying opportunity. A break of this area should extend losses to 1.0090.
Today’s Range 1.0270-1.032