Ahead of data, which is expected to have a sinificant influence on CAD, the USD/CAD pair is trading on a verge of a breakout.
An upcoming BOC’s interest rate is another major factor to watch followed by Canadian inflation. We expect BOC to cut the interest rate. In case this happens, the USD/CAD pair is likely to fly another 250 pips up.
USD/CAD- The pair has been facing strong resistance at 1.2800. A daily close above 1.2835 is likely to enable the pair to touch the level of 1.3060 immediately. Strong multi-resistance is seen between 1.2980 and 1.3060.
We expect wild moves at today’s session. In case the pair falls badly, buying will be available between 1.2680 and 1.2660 with sl 1.2640. In case the pair falls even below 1.2630, it is likely to extend towards 1.2600, which is an arrested level for a fall during a day. We express optimism in our long-term forecast.
Intraday buying is available above 1.2750 with targets at 1.2790 and 1.2830. Strong buying momentum is expected above 1.2840 towards 1.2900 and 1.2950 . In case of a daily close above 1.2850, bulls will aim for 1.2980 and 1.3050. Intraday support is found at 1.2720 and 1.2700.
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