LOONIEVIEWS 18 Dec 14
A Rising oil tide lifts all Loonie boats
USDCAD Open 1.1574-80 Overnight Range 1.1572-1.1646
USDCAD was ignored in Asia but Europe was a different story. A bounce in WTI during the European session with a dash of EURCAD selling thrown in for good measure, helped to drive USDCAD through the intraday floor at 1.1600-05 down to 1.1572 before it ran out of steam.
The bounce in WTI has offset some of the pressure from the FOMC’s slightly hawkish stance which suggests USDCAD may be range bound into year-end. For now, oil price movements trump US rate hike concerns.
The intraday USDCAD technicals are bearish while trading below 1.1630 looking for a break of the minor support at 1.1550 for a test of the November uptrend line at 1.1500-05. Below this level opens up a deeper correction to 1.1340. A break above 1.1680 will lead to 1.1730.
Today’s Range: 1.1510-1.1610