USD/CAD: Session Lows in Sight after Options Bid Expires
Boston, June 19.
USD/CAD has come under downward pressure after demand linked to 1.0700 expiries this morning has disappeared now that the expiration has passed. The buck has slipped back toward session lows in the 1.0665/70 area despite a broad dip in commodity prices today. Trendline resistance at 1.0725 is prompting some to short USD/CAD with a tight stop above the downtrend, a strategy that has worked flawlessly these past several months. 1.0650 and 1.0605 are support on dips near-term.
USD/CAD has taken out stop-loss sell orders below the 1.0650 level with dealers reporting broad- based selling from a variety of sectors. A CAD-positive M&A backdrop is helping keep the Loonie underpinned with repeated reports of BHP throwing their hat in the ring for Alcan. Talk of CAD/CHF buying this morning is making the rounds which some suspect is M&A-related.
1.0605 is next support of note for USD/CAD while 1.0665/70 should now cap rebounds near-term.