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Range-trade continues for USDCAD. Large option expiry today. Canadian GDP out tomorrow.

CXI March 28th, 2018

Summary

  • USDCAD: The range trade continued in USDCAD yesterday.  Prices moved above and below chart support in the 1.2870s numerous times, but traders could not make any headway at the 1.2890 resistance level.  Another attempt was made to break above that level in early European trade, as we saw a wave of broad USD buying, but the move was very short lived.  USDCAD has now given up and quickly dropped 40 pts lower, back below the 1.2870s.  The negative momentum at this hour is also being exacerbated by some EURCAD and GBPCAD selling, along with some broad USD selling.  It should be another quiet session today with just the US Feb Trade Balance and 3rd read on Q4 US GDP out at 8:30amET.  Seeing as both are 2nd-tier releases, we think traders will be more focused on the large USDCAD option expiry ($1.4bln rolling off at 1.2850), and then perhaps the weekly DOE oil inventory report (because they’ll be nothing else to trade off of and this report moved oil and CAD last Wednesday).  Tomorrow will see the release of Canadian GDP for January.

Tune in @EBCTradeDesk for more real-time market coverage.

 

Market Analysis Charts

USD/CAD Daily Chart

USD/CAD Hourly Chart

EUR/CAD Daily Chart

GBP/CAD Daily Chart

Charts: TWS Workspace


About the Author

Erik Bregar

Erik Bregar - Director, FX Trading

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Erik works with corporations and institutions to help them better navigate the currency markets. His desk provides fast, transparent, and low cost trade execution; up to the minute fundamental and technical market analysis; custom strategy development; and post-trade services -- all in an effort to add value to your firm’s bottom line. Erik has been trading currencies professionally and independently for more than 12 years. Prior to leading the trading desk at EBC, Erik was in charge of managing the foreign exchange risk for one of Canada’s largest independent broker-dealers.

Interested in creating a custom foreign exchange trading plan? Contact Us or call EBC's trading desk directly at 1-888-729-9716.


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