The greenback boosted at yesterday's session after the ISM data had surpassed expectations. Today, traders are focused on Yellen's speech and Canada's GDP data. Tomorrow, BOC rate statement is due. We expect another rate cut from the BOC. If BOC Governor Poloz opts for a rate hike, it affects short-term traders. The BOC decidde on 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 is due today. This time, we expect a positive reading. Lower crude oil prices will continue to put pressure on the loonie against the greenback. As of now, at the Asian session the pair opened on a bearish note. The pair has been in a consolidation range for 19 sessions between 1.2350 and 1.2700. 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 1.2545 and 1.2565. The intraday support is seen at 1.2520 and 1.2477. We recommend buying with sl 1.2500. If the price takes out the stop loss, we recommend selling below 1.2470 with targets at 1.2450 and 1.2400. The panic will be triggered below 1.2450.
Selling below 1.2470, panic below 1.2450.
NOTE: On a weekly positional view, until the prices close above 1.2388, buying remain in play with a target at 1.2680
Uitgevoerd door, Analytische expert
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