After the FOMC dovish statement, the USD extend the selling pressure. The pair edged lower, made a double top at 1.2563. At yesterday's session, the pair rejected at 50Dsma and closed below 100Dema at 1.2240. But at the end of the day, the pair erased most of its losses. We advised selling on rallies. Initially, the pair formed a double top at 1.2563 falling to 1.2200 (360 pips). The pair made a double top at 1.2361 again and fell to 1.2128 (233 pips). In the daily and hourly charts, the pair has been making lower lows and lower highs.
The pair is trading below 200Msma at 1.2260. It has been trading below 20Wsma for 2 weeks at 1.2400. Bulls' last hope remains at 1.1970 and 1.1940 200Dsma and 200Dema respectively. The previous swing low is found at 1.1920. The support is found at 1.1900 (rounded). Until the price closes below 1.2400 on the downside, 2.000 and 1.1750 are expected in coming weeks. A daily close below 1.1900 is likely to push the pair towards 1.1750 and even lower.
Ahead of today's Canada CPI and retail sales data, CAD is trading lower against USD at today's Asian session 1.2228 compared to Thursday's closing price of 1.2223. We recommend selling below 1.2200 with intraday targets at 1.2150, 1.2130, 1.2100, and 1.2000. Intraday resistance is seen at 1.2250 and 1.2285. Use a rise to sell with sl 1.2320.
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