Loonieviews September 11, 2014


LOONIEVIEWS

USDCAD Open 1.1000-04 Overnight Range 1.0939-1.1010

Yesterday’s end of day visit to 1.0940 was short lived as USDCAD drifted higher in Asia and then accelerated during the European session testing 1.1010 as Toronto walked in. USDCAD sentiment is bullish encouraged by the perception that Canadian rate increases will lag those of the US. That isn’t the whole story; the US dollar is bid across the G-7 spectrum on anticipation of a hawkish FOMC statement which has turned many technical studies bullish. Also, the recently announced stimulus programs by the ECB and expectations of further easing by BoJ have caused more US dollar demand. The announcement of further sanctions on Russia by the G-7 may have added an element of risk aversion to the equation as did the Obama announce coalition to fight ISIS.

The intraday USDCAD technicals are bullish while trading above 1.0960, supported by the inability to extend losses below 1.0940 and the subsequent recovery above 1.0990. However, the lack of upside progress through the 1.1030-50 resistance area argues for further 1.0940-1.1050 consolidation. For today, USD support is at 1.0970, 1.0950 and 1.0940. Resistance is at 1.1010, 1.1030 and 1.1050.

Today’s Range 1.0970-1.1020

Categories FX, Foreign Exchange, Currency, Canadian Dollar

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

search previous next tag category expand menu location phone mail time cart zoom edit close