In the week ended July 4, the advanced figure for seasonally adjusted initial unemployment claims was 297,000, 15,000 above the previous week’s revised level.
Crude priced rebounded after a sharp fall favoring CAD. Ahead of today’s Canada employment change and unemployment rate, CAD is trading higher against USD.
The pair made a double top at 1.2750. We have been advising to book profit at 1.2770 and to sell with tight sl. The positional texture favors buying on dips. After a sharp rise, the trend shifted to a mild healthy correction. One selling is not enough; we have to wait for follow-up selling today as well. Ultimately, we have to obey to the market.
The parallel resistance is seen at 1.2800 and 1.2835. Until the pair closes above 1.2835, fresh buying is not advised. We ask readers to wait patiently for a minor healthy correction to re-enter again.
Intraday support is found at 1.2660 and 1.2640. Selling accelerates below 1.2640 towards 1.2620, 1.2600, and 1.2580 again. The trend favors buying on dips with sl 1.2440. The 20Wsma is found at 1.2400. Bulls laid a strong base in different layers initiated at 1.2200, extended to 1.2300 and 1.2400 later. On the other hand, positive news from Greece can cause big moves in EUR/USD and big falls in USD/CAD. This is the only pair taken an advantage from the Greek saga in the near term.
In case the pair manages to close above 1.2835, we will open a buying trade aiming at 1.3150 again. Today, the pair opened on a bearish note. At Wednesday’s session, we opened a bearish trade. We stick to that today as well. Risky sellers are advised to use a rise to sell with sl 1.2835 on a closing basis hold for the next 2 or 3 days. Bulls can buy above 1.2720 with targets at 1.2750, 1.2775, and 1.2800–1.2820 in the extreme case.
The material has been provided by InstaForex Company – www.instaforex.com