Real gross domestic product (GDP) grew 0.6% in the fourth quarter, following a 0.8% gain in the third quarter. On a monthly basis, real GDP increased 0.3% in December. The CAD gained against the greenback after the GDP data beat estimates. It came as a surprise to the markets. Household final consumption expenditure rose 0.5%, contributing to economic growth in the fourth quarter. Today, traders eye BoC's rate statement. Earlier, we expected another rate cut. But after the GDP data and Poloz speech last week, now another rate cut is raising question. US ADP non-farm unemployment change, final services PMI, ISM non-manufacturing PMI, and Federal member Evans' speech are due today. It's a busy day with a series of economic data. In case of another rate cut, it will make the loonie lose in value sharply. As of now, at the Asian session the pair opened on a bullish note. The pair has been in a consolidation range for 20 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 1.2460 and 1.2430. On a weekly positional view, until the prices close above 1.2350, buying remain in play with a target at 1.2565, 1.2660, and 1.2680. Bulls needs to watch for BoC another rate cut. Overall, the picture favors buying on dips. In the near term, until the prices close below 1.2565 bears try to drag below 1.2350 and 1.2290.
USD/JPYThe pair is trading at a three-week high. The pair has multiple resistance zone between 120.50 and 120.80. The prices are making higher lows and higher highs on the h4-chart. Support has climbed to 118.20 to 118.60. It's a good sign for further room on the upswing. For an intraday view, the price has been facing strong resistance at 119.75. We advise buying above 119.75 with targets at 119.95, 120.20, and 120.50. The pair has intraday support at 119.40. We advise you to sell only below 119.30 with targets at 119.15 and 118.70. Another upswing looms above 120.50. For an intraday view, until a h4 candle closes above 119.30, the long trade remains in play. Ahead of ADP data, the greenback is trading lower against the yen. The overall picture favors buying on dips. Buying above 119.75.
Selling below 119.30.
Uitgevoerd door, Analytische expert
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