The pair extended its fall for the second consecutive day as well. It closed at the lowest point of the day at Friday’s session.
The current week wraps with major economic data from the US and Canada as well.
US: data on retail sales is due on Tuesday; Federal Chairwoman’s testifies are expected on Wednesday, Unemployment claims and Philly Fed manufacturing index is due on Thursday, building permits and the CPI is expected to be published on the weekend.
CAD: Wednesday is a big day for the pair. Data on manufacturing sales, BOC press conference, and BOC rate statement is due this week. Readings for the CPI are expected to be released on the weekend.
These coming Wednesday and Friday are likely to be very big days in terms of volatility. Both the US and Canada will deliver significant data.
The pair made a double top at 1.2750. We have been advising to book profit at 1.2770 and selling with tight sl. The positional texture favours buying on dip. After a sharp rise, the trend shifted to a mild healthy correction.
The parallel resistance is seen at 1.2800 and 1.2835. Until the pair closes above 1.2835, fresh buying is not advisable. We request readers to wait patiently for a minor healthy correction to enter again.
Intraday support is found at 1.2640. Selling accelerates below 1.2640 towards 1.2620, 1.2600, and 1.2580. The 20Wsma is found at 1.2400. Bulls laid a strong base in different layers initiated at 1.2200, extended at 1.2300 and 1.2400 later. On the other hand, in case of positive news from Greece, big moves in EUR/USD and big falls in USD/CAD are expected. This is the only pair taken an advantage from the Greek saga in the near term. Oil prices also shoot immediately that helps CAD rebound chances to remote.
In case the pair manages to close above 1.2835, we will open a buying trade again with targets at 1.3150. At Wednesday’s session, we opened a bearish trade. We stick to that today as well. Risky sellers should use a rise to sell with sl 1.2835 on a closing basis hold for next 2 or 3 days, as of now 100 pips given.
The pair has been consolidating in a tight range between 1.2650 and 1.2780. We can observe the lower lows are being reached in the H1 chart. Bulls can buy above 1.2720 with targets at 1.2750, 1.2775, and 1.2820 during the day.
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