The Canadian dollar has finally gained some traction, as the pairs like USDCAD and EURCAD are trading lower. The EURCAD is under pressure Intraday as the Euro sellers are seen aggressive. I think we can look for medium term sell opportunities in the EURCAD pair, as the bearish momentum is expected to continue.
There was an important bullish trend line on the daily chart, as can be seen above. The pair breached the trend line and moved lower. Now, the same trend line and broken support zone might act as a resistance for the pair. If the pair recovers some ground from the current levels and re-test the resistance zone, then we can enter into a sell trade.
Initial target should be around 1.4800 level, and final target could be around 1.4640 level. Stop should be placed above the 1.5400 level.
US GDP and pending home sales data
Yesterday in the NY session, US GDP and pending home sales data was published. US GDP annualized for the fourth quarter of 2013 reading was mostly in line with the expectations. However, the pending home sales registered a decline of 0.8% in February. Not only this, the previous reading was also revised lower from 0.1% to -0.2%. This was seen as an opportunity by the US dollar sellers, as the pair such as GBPUSD, AUDUSD and NZDUSD climbed higher. The AUDUSD pair was the biggest gainer, as the pair traded higher above the 0.9260 resistance level.
Fundamental Outlook for the day
Today, US personal spending data, core price index figures and Michigan consumer sentiment data will be released in the NY session. The Michigan consumer sentiment is expected to improve from 79.9 to 80.5. If the outcome is positive, then the US dollar can take a breather. If not, then one more round of selling is possible in the short term. Remember, today is Friday, so avoid jumping into any risky setup just ahead of the weekend, and wait for a right opportunity.
This analysis is taken from today’s Daily Market Forecast, which also includes trade opportunities on: EURUSD, GBPUSD, EURCHF, EURAUD, AUDUSD and USDCAD.
Get it HERE: Vladimir’s Markets Forecast
Have a great weekend friends. Happy trading!
