Loonie gains as US dollar retreats ahead of FOMC 17Nov14


Loonie gains as US dollar retreats ahead of FOMC

USDCAD Open 1.1285-89 Overnight Range 1.1263-1.1306

The Loonie extended yesterday’s rally into the overnight session but stalled near the 1.1260 USDCAD support area. The European session became a hive of activity when Japan’s Prime Minister called a “snap” election and announced a delay in the sales tax. USDJPY spiked to 1117.00 and then reversed course providing another example of the “rumour-fact” analogy. Meanwhile EURUSD also decided to go for a ride on the back of EURJPY demand and a little help from strong German ZEW data and pre FOMC position adjustment.

The lack of decent US or Canadian data argues for another day of FX trading consolidation within the confines of the overnight ranges.

The intraday USDCAD technicals are bearish while trading below 1.1290 looking for a break of support at 1.1260 to extend losses to 1.1220. A move above 1.1290 will lead to 1.1310 and then 1.1340. The short term technicals remain USDCAD bullish with the uptrend line from mid-September intact above 1.1250

Today’s Range 1.1260-1.1310

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