Denis Joeli Fatiaki
Independent Analyst
USD/CAD: Attempts to break above 1.30200
What happened in the last 24 hours of the trading session
USD/CAD: The US dollar broke through 1.30744 resistance which was highlighted in yesterday's update and reached highs of 1.31199 before pulling back to 1.30521. The Pair attempted to break to the upside at 1.30744 but failed and made a massive swing all the way to 1.30052 and bounced as indicated in the 60 minutes time frame.
What is going on now
USD/CAD: The US dollar is currently trading at 1.30200 after bouncing at 1.30052 and attempts to hang on to head back up. The Pair managed to break above the resistance trendline highlighted on the chart and could be heading to its first target at 1.30335 if it holds above 1.30052 support
My thoughts on what may happen
1. USD/CAD: The Pair has shown some very erratic swings in both directions in the last 48 hrs, and we are likely to continue to witness this type of activities in the coming trading sessions.
The volatility in the market creates excellent opportunities if you follow the trend and trade with trend not against the trend.
2. USD/JPY: The Pair needs to break and stay above 1.30200 to continue to its first target at 1.30335. The pair also need to stay above 1.30552 to avoid falling to 1.29965 and 1.29867 support
3. Support - 1.30052, 1.29965, 1.29867
4. Resistance - 1.30200, 1.30335, 1.30521
5. A potential long target is estimated at 1.30335 to 1.30521
6. It is a good practice to apply a stop loss to all your trades to protect your capital in case the market moves against your position.
Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer. Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. Risk Disclosure: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.
Recommended Content
Editors’ Picks
EUR/USD clings to daily gains above 1.0650
EUR/USD gained traction and turned positive on the day above 1.0650. The improvement seen in risk mood following the earlier flight to safety weighs on the US Dollar ahead of the weekend and helps the pair push higher.
GBP/USD recovers toward 1.2450 after UK Retail Sales data
GBP/USD reversed its direction and advanced to the 1.2450 area after touching a fresh multi-month low below 1.2400 in the Asian session. The positive shift seen in risk mood on easing fears over a deepening Iran-Israel conflict supports the pair.
Gold holds steady at around $2,380 following earlier spike
Gold stabilized near $2,380 after spiking above $2,400 with the immediate reaction to reports of Israel striking Iran. Meanwhile, the pullback seen in the US Treasury bond yields helps XAU/USD hold its ground.
Bitcoin Weekly Forecast: BTC post-halving rally could be partially priced in Premium
Bitcoin price shows no signs of directional bias while it holds above $60,000. The fourth BTC halving is partially priced in, according to Deutsche Bank’s research.
Week ahead – US GDP and BoJ decision on top of next week’s agenda
US GDP, core PCE and PMIs the next tests for the Dollar. Investors await BoJ for guidance about next rate hike. EU and UK PMIs, as well as Australian CPIs also on tap.