NZDUSD: Seeking to sell into any rallies pre-Rate day

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Whilst moves may be limited leading up to FOMC statement tonight could help provide some tradeable moves if we see enough strength from US data. Core Durable expected to tick higher at a time USD rests above key support levels, which may provide decent buying opportunities pre-release to anticipate a positive number.

TECHNICAL ANALYSIS:

NZDUSD: Seeking to sell into any rallies pre-Rate day

There is a thin resistance zone between 0.7911-17 which price is just beneath now. Ideally this will be respected as resistance but may be safer to wait to see if we produce a series of bearish candles below or around this level.

Due to intraday momentum being clearly bullish I would prefer not to fade into this rally just yet and await signs of weakness. Forex is always prone to spikes (especially lower-liquidity pairs such as the Kiwi Crosses) so always allow room for one more high.

If we break up towards 0.794-95 then it invalidates the original bearish wedge highlighted last week so we are running out of room for gains to sell into. However I suspect that any gains seen before Thursday morning are traders positioning themselves for this volatile session, and due to my outlook being USD bullish and NZD bearish, I am anticipating an unwinding of these positions on Thursday AM, hence the bearish bias leading up to this event.

USDCAD: Buy the dip but potential for a correction

There have been few catalysts for USD or CAD recently but price is grinding higher and producing higher highs/lows. Going into London open I suspect we will make an attempt to challenge 1.126 and how price reacts here is key.

If this level remains to cap as resistance then we can seek a break of a swing low (or the trendline) to trade a Bearish Wedge pattern. A break above 1.126 however could be classified as a breakout to a new range, to target 1.1280.