USDCAD Open 1.0592-97 Overnight Range 1.0587-1.0615
Original post on Saxo Bank’s Trading Floor
What goes up, goes down and the USDCAD epitomizes that fact. After failing to extend gains above 1.0700 last week, the USDCAD has gradually drifted lower. The break of the 1.0620 support level suggests that a short term top is in place at 1.0707 and targeting further US dollar weakness to 1.0570. The USDCAD selling can be attributed to position fatigue with long dollar positions being squared up ahead of year end. Yesterday afternoons announcement of a possible budget deal in the US was met with a collective "Yawn" in FX markets, at least so far. The risk of a government shutdown on January 15 dissipates, removing one important obstacle to the FOMC tapering program. The lack of data from the US and Canada suggests a choppy, flow driven day ahead, inside of current ranges.
The intraday USDCAD technicals are bearish while trading below 1.0620 pointing to a test of 1.0570. A move below 1.0570 would lead to further US dollar weakness to 1.0535. A retracement above 1.0620 negates the downward pressure and suggests a 1.0580-1.0660 trading range
Watching me, watching you
Finally, for any worriers out there: the Washington Post reports that the FBI has the capability to remotely activate the webcam on target computers and has been doing so for a number of years. They could be watching you right now and know that you have just sold EURJPY and aren’t happy with the position, just by the expression on your face. Geez, Santa just knew when you were bad or good, not the colour of your pyjama’s.
Today’s Range 1.0575-1.0615