USDCAD Open 1.0971-76 Overnight Range 1.0970-1.1027
"London’s calling and they wanted Canadian dollars"
USDCAD traded quietly in Asia aided in part, by Japan being closed for a holiday. Everything changed during the European session when the floor fell out of the nearly two week old 1.0990-1.1050 range. There doesn’t appear to be a single catalyst but the old adage of "what goes up, must come down" may be applicable. Tomorrows Canadian GDP could surprise to the upside, the ECB remains on hold, the FOMC will offer no surprises and the 50% Fibo retracement of the 2014 range has held which all combined may have led to the correction. The BoC governor’s speech to the House of Commons Finance committee, if dovish, could reverse today’s gains.
The intraday technicals are bearish with the move below minor support at 1.1010 and then 1.0990. The 100 day moving average at 1.0959 provides additional support at 1.0660. A move below 1.0940 targets 1.0910 while a move above 1.1010 targets 1.1050. For today, USD support is at 1.0960 and 1.0940. Resistance is at 1.0990 and 1.1010.
Today’s Range 1.0960-1.1010