Analysis of USD against CAD & JPY
The FOMC meeting is the highlighted
event in this week. Financial world Forex, Gold and equity markets are
preparing for Wednesday. I would request traders to close their pairs related to
USD before the FOMC meet. Wild moves are expected. The USDX is moving in line with the
expectation of a rate hike. If we dodn’t hear about the rate hike, it means
correction for the USDX and USD related pairs. Everyone eyes on the patience word. Some economists expect that the Federal Reserve can pause in being patient. A rise in USD had negative impact on the US economy. We think the the Federal
Reserve is likely to hike interest rates by 0.25% in June or September. Today, traders
eye industrial production and NAHB housing market index. We expect an uptick
from industrial production with maximisation of capacity utilisation.
The pair breached the previous high of 1.2798 but was unable to close
above that level. Today, early at the Asian session, the pair has been unable to breach 1.2824.This is not a good sign. Bulls are on a safe side in case the price will close above 1.2800 on a daily basis.Bulls and bears are waiting for
Wednesday. Intraday support is likly to be found at 1.2760 and 1.2730. Weekly support is seen at 1.2680 and 1.2620. Intraday resistance
is seen at 1.2800 and weekly is likely to be found at the level of 1.3000.
Bulls must close above 1.2800 as soon as possible. Bulls can challenge 1.3000
and 1.3250 in case prices close above 1.2800. We advised caution near 1.3000
odd level, as it’s a multi-month resistance.
The BoJ monetary policy is due for release on Tuesday. Oil prices continue
to stay under pressure. At the Asian session, the yen is trading higher
against the US dollar ahead of the data release. The price is consolidating at a 8-year high. Intraday
support was found at 121.20 and 121.00. We still opt to recommend buying on
every dip. Now, we are revising the targets at 124, 125.00, and 125.75. The
prices are making higher lows and higher highs on the h4 chart. Support has
climbed from 119.80 to 121.00. It’s a good sign for further room for upswing. If the price closes above 121.85 on a weekly basis, we can see 128.00
as well. It’s an one-side move all the way to new highs. Another upswing looms
above 122.0 with targets at 123.00 and 123.20 in a day or two. Later, 124.00 and
125.00 are expected. Until a h4 candle closes above 120.80, a long trade
remains in play. The overall picture favours buying on dips.
Key levels to watch- Must close above 121.85
Trade: we remain buyers.
The material has been provided by InstaForex Company – www.instaforex.com