Last Friday, we covered complete technical picture of this pair. The pair managed to move 200 pips from its lows. Ahead of the FOMC meeting, USD is trading higher against CAD.The USD related pairs has been correcting for more than 2 months. Until the Greece saga comes to the end, we don’t expect the Federal Reserve to provide a signal for the rate hike. It does not favor the greenback. On the down side, support is found at 1.1875 200Dema and 1.1763 200Dsma. In the daily chart, the pair has been making the minor bottom around 1.1940, whereas strong support is at 1.1875. Intraday resistance is seen between 1.2171 and 1.2200. Strong resistance is seen at 1.2175. The near-term reversal takes place in case of a closure above 1.2175 100Dema. We expect the bottom to be set between 1.1900 and 1.1875. In case the price takes over 1.1875, it can extend a sharp correction towards 1.1800/1.1760 where the sharp reversal is expected. In the daily chart, we can observe a positive divergence developing. The bottoming process is very painful after a sharp fall. In the four-hour chart, the triple was formed at 1.2171. We recommend fresh buying only above 1.2175. Until the pair closes below 1.2175, bears will try to retest lower levels. Support is found at 1.2100, 1.2050, and 1.2030. For an intraday view, selling pressure will emerge below 1.2140 towards 1.2120, 1.2100, 1.2085, and 1.2050. Today, the US housing will be in negative side. Use a dip to buy will be preferable.
Intraday- buy above 1.2175 with targets at 1.2200, 1.2220 and 1.2240
Sell below 1.2140
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