Loonieviews 14Sep16


ALL QUIET ON THE FX FRONT

USDCAD Open (6:00 am) 1.3157-61 Overnight Range 1.3130-1.3175 14 Sept 16

FX-At-A-Glance

NOTE: This chart represents gain (or loss) of G10 currencies vs the US dollar from NY close (4:00pm) to Sept. 14, 6:00 am EDT

USDCAD chopped around within a narrow range overnight. It is continuing to probe resistance in the 1.3150-1.3200 area but upside momentum has stalled in concert with a pause in this week’s US dollar rally and thanks to a blip higher in oil prices. Yesterday’s end of day American Petroleum Institute (API) Crude Stocks Change report showed a smaller build (1.4 million barrels) than what was expected. That gave oil prices a bit of a boost and acted as a drag on USDCAD gains.

In Asia, USDJPY garnered a lot of excitement. An article in the Nikkei Asia Review, available late yesterday afternoon, suggested that the Bank of Japan would take a number of steps at next week’s policy meeting including deeper negative rates. USDJPY rallied and touched 103.34 before dropping back to yesterday’s closing level at 102.64 during the European session. NZDUSD outperformed AUDUSD but both currency pairs traded higher.

In Europe, EURUSD trading was a non-event. The single currency traded in a 1.1210-40 range. Sterling was also quiet and still hasn’t recovered from Tuesday’s weak CPI data. The UK employment report was as expected.

Once again, today’s US data (Mortgage applications, Export/Import Price index) won’t provide any direction although the EIA Crude stocks Change report will be fodder for USDCAD traders. The BoJ and FOMC meetings are still a week away and FX traders will stay close to home, making for another dull session.

USDCAD technical outlook.

The USDCAD technicals are bullish while trading above 1.3050 and 1.3110. Both uptrends are looking to chop through resistance between 1.3190-50 and the 200 day moving average at 1.3263 to extend gains to 1.3400. However,, the 1.2650-1.3250 range has contained all price movement since May. For today USDCADS support is at 1.3130, 1.3110 and 1.3050. Resistance is at 1.3190, 1.3210 and 1.3250

Today’s Range 1.3120-1.3220

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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.

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