FOMC minutes - USD rebounds after the FOMC meeting minutes. Several participants judged that economic data and outlook were likely to warrant normalization. However, others anticipated that the effects of lower energy prices and the depressed dollar would continue to weigh on inflation in the near term, suggesting that conditions are unlikely to be appropriate rates hike until later in the year. A couple of participants suggested that the economic outlook would not call for any increase until 2016.
Upcoming events- Traders eye on today's unemployment claims. We expect readings to be positive this time.
Technical view - The USD index rebounds from lower levels. It is likely to create the double bottom around 96.20. The parallel resistance is seen at 98.28, the lenel of 98.67 is likely toact as a trend-change level. Bulls can challenge 99.80 in a day or two. Today the key resistance level is seen at 98.28. We recommend buying above 98.30 with targets at 98.50 and 98.64.
USD/JPY
After the BoJ's monetary policy statement, the pair made a low at 119.65. After the FOMC minutes, the pair gained extra boost towards 120.39. At yesterday's session, we recommended buying with sl 119.40. Today, JPY is trading higher against USD ahead of the major US data. The pair is consolidating at higher levels, it's a good sign to give another upside breakout towards 120.75, 121.00, and 122.00. Intra-week trend favors buying with sl 119.40 and positional buyers can use sl 119.00 wait for 121.50 and 122.00 levels. Multiple intervals hourly and four-hour chart favours buyers. Until the pair closes above 119.40, intra-week trend favors long positions. Intraday resistance is seen at 120.40. We can expect big moves above 120.45 (double top) towards 120.60 and 121.20 in a day. A daily close above 120.50 leads to 122.00. Until the price close above 119.40, a target is likely to be at 122.00.
Trade: Buying above 120.50 with targets 120.75, 121.20.
USD/CAD
The pair edged lower after testing the level of 1.2522 with a possible double top pattern forming on the H4 chart, with tops at 1.2522. The pair made a low at 1.2388 and changed its direction towards the resistance level at 1.2575. It made a high at 1.2567. In the H4 chart, the double top at 1.2567 was formed. In my Tuesday's article, I requested traders to buy on dip with sl 1.2350. Those who followed my recommendation gained approx 150 pips a day. Intraday support is found at 1.2520 and 1.2490. Now, we reccomend to raise the trailing stop loss to 1.2490 and hold it there. For fresh buyers we recommend buying above 1.2575 with targets at 1.2595 and 1.2650. Today and tomorrow, we can expect wild moves ahead of major data like today's US unemployment data, Canada building permits, and tomorrow's Canada employment change and unemployment claims.
Trade: Buying above 1.2575
