USD/CAD
The new week is starting with heavy-duty economic data on the US dollar and Canadian dollar. Two European Central Bank's meetings are scheduled on Tuesday and Wednesday. Yellen's speech and BOC rate statement are also due. We expect another rate cut from the BOC. If BOC Governor Poloz
opts for a rate hike, it effects short-term traders. The BOC came with a rate cut to 0.75% at the last meeting. As we expect, another rate cut will make the loonie lose in value sharply. The GDP is the other driving factor for the Canadian dollar, which falls on Tuesday. This time, we expect a positive reading. Lower crude oil prices should continue to put pressure on the loonie against the greenback. Today, traders eye the US ISM manufacturing data.
Technical view
The pair stalled its five-month winning streak and lost 1.5% on a monthly basis. As of now, at the Asian session the pair opened on a bullish note. The pair has been in a consolidation range for 18 sessions between 1.2350 and 1.2700. If either side makes a breakout, it will create more room to trade. The weekly support is set at 1.2350 and monthly is at 1.2300. The weekly resistance is found between 1.2665 and 1.2700. Bulls can challenge 1.2970, in case the prices close above 1.2700. The intraday resistance is found between 1.2535 and 1.2550. We recommend fresh safe buying above 1.2535 with targets at 1.2550, 1.2580, and 1.2600. The intraday support is seen at 1.2480 and 1.2450. We recommend selling below 1.2480 with targets at 1.2450, 1.2430. and 1.2400.
Buying above 1.2535.
Selling below 1.2480.
USD/JPY
The new week is starting with heavy-duty economic data on the US dollar and nothing on the yen. The European Central Bank's meeting are scheduled on Tuesday. Yellen's speech is also the key event. Today, traders eye US ISM manufacturing data. Unemployment rate, unemployment claims, and NFP are major economic data this week. The US dollar index gave an upside breakout from a two-week trading range. At the Asian early session, the index hit a high at 95.51, the previous high was made at 95.53. Bulls can challenge 96.40 and 97.80 in the near term, in case the price closes above 95.53. Ahead of the ISM manufacturing data, USD is trading higher against the yen. The prices have been consolidating in a range between 115.50 and 120.80 for 10 weeks. The pair has weekly resistance at 120.80. The pair has intraday support at 119.50. Until the pair holds and closes above 118.20, we recommend bullish views. We advise you to sell only below 118.20 with targets at 118.00 and 117.60. We recommend buying at the market price and at every dip with targets at 120.00, and 120.50. Another upswing looms above 120.50. Until the cross closes above 118.20, the long trade remains in play.
