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    Technical analysis of USDX & USD/CAD for May 26, 2015

    The USDX extended the bullish foot print yesterday. The index approached the 50Dsma at early Asian session today. The US is preparing for the first rate hike forecasted for September or the end of 2015. As of now, the date is not clearly singled but the hike is imminent. This factor made the USDX and USD related pairs bullish like USD/JPY, USD/CAD, and USD/SGD. Today, traders eye on the US core durable goods orders. Manufacturing data returned back in March after seven months of negative readings. We expect April's readings to stay above 0.4%. The CB consumer confidence is due for today. April's readings were lower, 95.2, compared to 101.40 in March. In May, we expect a positive reading above April's data. In case readings meet our expectations, the USDX will extend to 97.30 and 98.40 in a day or two. We initiated bullish view at 93.50 earlier (May 15th article).

    USD/CAD

    Ahead of the BOC statement, the pair is trading on a verge of bullish break. We expect the BOC to deliver unchanged stance. After inflation data release, USD gained strong momentum against most majors and USD related pairs. The pair has been facing strong resistance at 50Dsma 1.2350 and 1.2365 100Dsma. The fresh breakout is available above 1.2365 towards 1.2650 initially, and a new high later. We recommended buying at 1.2000 (refer article May 15th) as of now 300 pips mined. Those who bought earlier can book profit at the current levels. We will advise fresh buy in case the price manages to close above 1.2400. Intraday buying opportunity is seen above 1.2325 with targets at 1.2350, 1.2365, and 1.2400. In case of a daily close above 1.2365, bulls will aim at 1.2650. If the price closes the week above 1.2400, bulls will aim at 1.2800. Intraday support is found at 1.2300 and 1.2275.

     

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