USDCAD Overnight Range 1.4180-1.4265
FX markets were a tad less agitated overnight. There was a tepid drift toward risk-seeking trades when China announced a mere 2 pip increase in the USDCNY fix, to 6.5628. It helped that Chinese equity indices eked out some gains.
Sterling was the story in Europe. GBPUSD got smacked, in part due to weak Industrial Production and Manufacturing Data and in part to the on-going devaluation ahead of the anticipated June Brexit referendum.
USDCAD made another high when oil prices touched $30.4/barrel and threatened to break below $30.00/b. Profit taking took the price back to $31.60 and USDCAD dropped.
There is nothing in the way of inspiring US or Canadian data today leaving oil prices and equity market direction to guide FX markets.
USDCAD technical outlook
The intraday USDCAD technicals are bullish protected by a series of intraday and short term uptrends and shallow profit taking retreats. The break of resistance at 1.4200 puts 1.4285 in play, which is the 0.70 cent level on IMM contracts. CAD buyers/US dollar sellers should emerge around this level. A solid break above 1.43000 hangs the target on 1.4500 which is the 76.4% Fibonacci retracement level of the 2002-2007 range.
For today, USDCAD support is 1.4180, 1.4130 and 1.4050. Resistance is at 1.4220 and 1.4260
Forecasted Range 1.4160-1.4240
Chart USDCAD 1 hour