Analysis of USD against CAD & YEN
The US dollar traded lower against most major pairs last week. Today, traders eye existing home sales and FOMC members testimony. We expect the pace of sales to increase in February. Harsh weather is the main concern to improve the pace of sales in recent times. If the actual data comes in line with expectations, the US dollar will take back its leadership status. Today, the USD index opened on a bullish note. The index has been taking support from 20Dsma.
USD/CAD
We have been recommending buyingwith SL at 1.2448 on a closing basis. We still recommend the same strategy. The pair prepared a strong support base between 1.2350 and 1.2300 at 200MSMA. Until prices close above 1.2300, buying on dips still remains in play. At Friday's session, we recommended selling below 1.2660 with targets at 1.2640 and 1.2600. The pair made a low at 1.2546. The weekly resistance seems at 1.2720 and intraday resistance seems at 1.2660. On the h1 chart, lower lows and lower highs are developing. This is not a good sign in the near term. Today, the pair opened on a bullish note ahead of the existing home sales data. Strong upswing can be expected only above 1.2760. The key level to breach is at 1.2760 to print a fresh new high.
USD/JPY
Ahead of the US existing home sales data, the pair opened on a bullish note. Intraday support is likely to be found at 119.84 and 119.68. Resistance is seen at 120.60. Parallel support is at 119.00 or 50DSMA. We recommend buying with SL at 118.90. This view is valid for this week. Bulls must close above 121.00 to take charge. Until then, the trading range pattern is framed between 118.90 and 121.00.
Key level for bulls to close above to take charge:
USD/CAD at 1.2760,
USD/JPY at 121.20,
USD/CHF at 0.9980.
