Weak oil equals weak Loonie
USDCAD Open 1.1974-79 Overnight Range 1.1944-1.1991
The pattern of FX volatility during the Asian session continued overnight led by USDJPY. Aussie and Kiwi rallied on better than expected China export data. However the rallies were not sustained during a somewhat calmer European session. Worse-than-expected UK inflation undermined sterling while and was the highlight in Europe.
USDCAD trading mirrored moves in the oil market and oil was soft. WTI is sitting at 44.64 with the prospect that tomorrows Crude Inventory data will undermine prices further.
The short term USDCAD technicals are bullish while trading above 1.1890 representing the uptrend from the beginning of January, a level that is being guarded by minor support at 1.1940. 1.2000 is merely psychological resistance but will attract selling interest ahead of minor resistance at 1.2040.
For today, USD support is at 1.1960, 1.1940 and 1.1905. Resistance is at 1.2000 and 1.2040
Today’s Range 1.1960-1.2040