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    Technical analysis and trading recommendation for USD against CAD & YEN for April 07, 2015

    Services PMI showed the sharpest increase in the US service sector output since August 2014.

    The US services sector continued to rebound after a slowdown at the turn of the year. Business activity, new work, and employment levels increased at a faster pace in March. The final Markit US Services Business Activity Index hit 59.2 in March against 57.1 in February; the seasonally adjusted index remained well above the neutral 50.0 threshold. The latest index reading was also stronger than expected (55.8) and signaled the fastest expansion of the service sector output since August 2014.

    Dudley said: If this labor market improvement continues and the FOMC is reasonably confident that inflation will move back to our 2 percent objective over the medium-term, then it would be appropriate to begin to normalize interest rates.

    Upcoming event:

    Today, traders eye on JOLTS jobs openings, the major event falls on Wednesday FOMC meeting minutes.

    Technical view:

    Now, USD related pairs are not enjoying a bullish rise. USD/CHF stood first followed by USD/JPY and USD/CAD in the bearish list of USD related pairs. USD/CAD was rejected at the parallel resistance, testing its face at 0.9434 200Dsma. Intraday and weekly trends favor bears. Until the price closes below 0.9751, we can expect 0.9370, 0.9120 in the medium term. In case the price closes below 0.9434, bears will ride towards 0.9120.

    USD/JPY

    Today and tomorrow are going to become big days for JPY. The BoJ's monetary policy statement and press conference are due for release soon. Ahead of the major events, JPY is trading lower against USD. At yesterday's session, the pair paused its 3-day consecutive fall. The pair managed to close above 100Dsma and 50Dsma at yesterday's session after PMI data. Bulls' fate lies at 117.70. Until the pair closes above 117.70 we, can hope for the near-term bullish trend. If we keep moving averages aside, the pair is likely to go 116.75. Strong support lies at 115.50, the bull-run picture will get damaged in case the price closes below 115.50. I don't think this damage is going to take place in the near term. In case this happens, we can conclude the pair was capped. Strong resistance is seen at 120.36. We can expect a sharp upswing above 120.40. We recommend intraday buying above 119.90 with targets at 120.30, strong momentum looms above 120.36. On the downside, support is found at 119.10. We recommend selling below 118.90 with targets at 118.70, 118.40, and 118.00.

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    USD/CAD

    The pair moved from 1.2410 to 1.2784 and fell back to the support zone again. The pair has been falling for 4 consecutive days. The Canadian PMI printed below 50.00 mark in March. Data was printed far below economists' expectations. At yesterday's session, spring Business Outlook Survey was released. Lower oil prices continue to dampen the overall sales outlook weighing on investment and hiring intentions. However, the majority of businesses are benefiting from the strong economic outlook for the the United States and the boost in competitiveness from the weaker Canadian dollar. Strong technical support lies at 1.2350. If the price closes below 1.2350, it is going to be a real problem for bulls. Intraday support is found at 1.2450. Strong resistance is seen at 1.2575. Until the price closes below 1.2575, bears have the upper hand. There is no aggressive buying available for today's session. Traders can wait patiently to buy on dip with sl 1.2350.

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    Uitgevoerd door, Analytische expert
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