The USDX still experience pressure after the FOMC meeting. The pair is moving towards lower highs and lower lows. The intraday support is found at 93.90 and 93.50. We have been recommending selling at 92.50 and 92.00. Data on US home sales, durable goods orders, and final GDP is due today. Traders eye existing home sales data. The European summit is another event to watch during today's session. Economists expect the US housing market to expand at a slow pace. The improvement in the labor market will support the housing market in coming months.
After the Canada CPI data release, CAD is trading lower against USD at Friday's session. Besides, after the FOMC's dovish statement, the USDX has been extending its selling pressure. At Friday's session the pair managed to close above 50Dsma. The pair made a double top at 1.2563 and fell to 1.2200 (360 pips). The pair made a double top at 1.2361 and fell to 1.2128 (233 pips). The pair closed and was trading below 20Wsma (1.2400) for 2 consecutive weeks. Until the price closes below 1.2410, selling on rises is preferable.
In the hourly chart, the pair made higher low formation after 2 weeks. The support is found at 1.2240 and 1.2214 rounded to 1.2200. We recommend selling below 1.2200 with intraday targets at 1.2150, 1.2130, 1.2100, and 1.2000. In case US home sales data delivered positive readings, the pair will to aim for 1.2340/1.2350, in the extreme case it can move towards 1.2380 or 1.2400. In this case, we recommend buying above 1.2300.
The material has been provided by InstaForex Company – www.instaforex.com