Loonieviews 24Apr16


Waiting for Janet

USDCAD Open (6:00 am) 1.2920-24 Overnight Range 1.2903-1.2951 24Aug16

FX-At-A-Glance

NOTE: This chart represents gain (or loss) of G10 currencies vs. the US dollar from NY close (4::00pm) to NY Open Aug 24, 6:00 am EDT

It was another overnight session where FX action was exciting as watching paint dry. A lack of major economic data and the Janet Yellen speech on Thursday evening at Jackson Hole is all the excuse traders needed to get back to playing Pokemon GO. USDCAD jumped in the Asia session following the release of the API Crude Stocks report showing a rise in inventories of 4..464 million barrels. The previous week had declined by 1.0 m/b. That rally ended when Europe walked in and USDCAD retreated back to where it was at the end of the day, in New York.

AUDUSD was under pressure in Asia due to general US dollar strength but it too, rallied during the European session. USDJPY see-sawed in a tight 100.00-100.25 range.

In Europe, EURUSD declined steadily while GBPUSD rallied. EURUSD sank in part due to position adjustments ahead of Janet Yellen’ speech on Thursday. GBPUSD rallied as traders trimmed extreme short positions.

All of the FX moves are occurring in an information vacuum and in thin trading conditions.

The wait for Ms. Yellen’s speech tomorrow, will ensure a dull day today. USDCAD traders will be waiting to see how the oil markets react to today’s EIA Crude stocks report. In addition, an earthquake in Italy and a US/Turkey offensive in Northern Syria will provide some distractions today.

USDCAD technical outlook.

The intraday USDCAD technicals have flipped back to bullish, supported by the move above 1.2930 and by the minor uptrend from the 1.2762 low, last Thursday. A break above 1.2980 is required to extend gains to the 1.3050-1.3070 resistance area. A move below 1.2850 argues for further weakness to 1.2760. In addition, the uptrend line from the June low of 1.2640 remains intact while prices are above 1.2760. For today, USDCAD support is at 1.2905 and 1.2880. Resistance is at 1.2950, 1.2980 and 1.3010.

Today’s Range 1.2910-80

Chart: USDCAD daily

Advertisements

Author: Loonieviews

In the past 30+ years, I have been an FX interbank market making trader, a high performing FX and Derivatives Sales person, creator of simple and complex risk mitigation strategies and a manager of high performance FX teams. The Trade of the Day is a culmination of that experience. Retail FX traders have access to a well-crafted and carefully researched FX trade strategy designed to generate FX profits while mitigating losses.

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