The total value of Canadian building permits rose 11.6% to $6.9 billion in March from a month earlier. This was the first increase in three months. Also, oil prices dropped from $62.00odd added more fuel to the loonie. As we knew, the loonie is a commodity currency. Today, traders eye Canadian employment changes and unemployment rate. We expect both Canadian data to be on the positive side. At yesterday’s session, we recommended buying with targets at 1.3750 and 1.3760; exactly, the cross made a high at 1.3765 and changed the direction towards lows. In case the level of 1.3765 is taken off, big spikes are likely to be added to the system. Intraday support is found at 1.3570 34hrsma. We recommend selling below 1.3570 with targets at 1.3510 and 1.3470. Panic will be triggered below 1.3470 towards 1.3400. The current uptrend will be cancelled in case the price breaks below 1.3385. On the bullish front, two levels arrest the current rally 1.3765 200Wsma and 1.3780 50Msma. We expect 400pips on the higher side in case if these taken out on a closing basis. The cross had been consolidating for 6 days before it moved higher to the crucial resistance level. The pair managed to close above 20Dsma and 50Dsma. In case the price closes above 1.3765, the fresh lows will be added to this cross aiming for 1.3820 and 1.4070 in the near term. At yesterday’s session, we advised that in case the cross is unable to give a break higher in a day or two, the pair can correct towards 1.3600 and 1.3520. As of now the cross made a low of 1.3595 and was rejected at 1.3765 again.
Trade: Selling below 1.3570 with targets at 1.3510 and 1.3470
Buy above 1.3630 with targets at 1.3660 and 1.3700/1.3710.
The material has been provided by InstaForex Company – www.instaforex.com