Loonieviews April 10, 2014


USDCAD Open 1.0895-00 Overnight Range 1.0871-1.0900

The loonie is hanging around important resistance in the 1.0890-1.0910 range (previously key support) attempting to determine whether the move below the 100 day moving average (1.0905) was for real or merely over exuberance. Aussie and Kiwi rallied on better than expected domestic data (AUD jobs rose 18K, UE rate 5.5%) shrugging off news of China’s disappointing trade data. The Bank of England left rates unchanged and demand for the EUR 3 billion Greek bond issue was close to 20 billion. There is only tier 2 data released in Canada and the US today.

The short-term USDCAD technicals are bearish while trading below 1.0940 looking for a test of support at 1.0840 and then 1.0735, the level where the 2014 USDCAD rally was launched from. The intraday technicals are modestly bullish while trading above 1.0875 seeking a retest of 1.0910 resistance. A break of this level would lead to 1.0940 while a move below 1.0875 suggests further USDCAD weakness to 1.0840.

Today’s Range 1.0860-1.0910

Categories FX, Foreign Exchange, Currency, Canadian Dollar

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