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