The USD related pairs have been correcting for more than 2 months. Except for USD/JPY, pairs were trading almost near 200Dsma/200Dema. USD/CHF is an exception on this view. Today, I am would like to discuss technical perspective on the USD/CAD pair. Both these pairs are trading around 200Dsma. We will go through USD/CAD first. The pair gave a break on the downside following 3 months of consolidation. The strong resistance was found at 1.2350 and 1.1875 200Dema and 1.1763 200Dsma on the down side. The chart looks better for USD/CAD compared with USD/SGD. In the daily chart, the pair has been making minor bottom around 1.1940, whereas strong support is found at 1.1875. Intraday resistance is seen between 1.2005 and 1.2028. Strong resistance is seen at 1.2095 rounded to 1.2100. The near-term reversal takes place in case of a closure above 1.2175 100Dema. We expect bottom to be placed between 1.1900 and 1.1875. In case the price takes out 1.1875, it can extend the sharp correction towards 1.1800/1.1760 where we expect a sharp reversal. In the daily chart, we can observe positive divergence. The bottoming process is a very painful process after a sharp fall in the prices.
Intraday- buy above 1.2010 target 1.2030, 1.2050, 1.2080, and 1.2095
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