The US dollar was seen trading higher against all other major currencies, as the fed interest rate decision was on the positive side of the dollar. The USDCAD pair also traded higher and jumped towards the 200 hourly moving average. There is a chance of a minor pullback in the short term, which can be seen as a buying opportunity. So, let’s monitor the price action and wait for a right opportunity.
There is a bearish trend line formed on the hourly chart of the USDCAD pair, which might act as a catalyst in the short term. The pair is currently trying to break the mentioned trend line. There is a chance of a minor correction from the current or a bit lower levels. If the pair moves a bit lower towards the 1.11980 support area and makes a stop, then we can enter into a buy trade.
Initial target should be around the 1.1280 level, and final target could be around the 1.1340 levels. Stop should be placed below the 1.1130 level.
Reviewing recent events and trades
The US dollar surged higher Intraday against almost all major currencies, as the fed interest rate decision was broadly in favor of the same. The fed made no changes in the interest rate, but scaled their asset purchase program to zero. There is no more QE3 now. The EURUSD pair collapsed after the release and traded below the 1.2620 support area. Moreover, the RBNZ also announced the interest rates and made no changes. The NZUDSD pair was seen trading lower as the central back kept their dovish to a neutral stance.
Fundamental Outlook for the day
Today, there are again a couple of important releases lined up during the NY session in the US. The US GDP data along with the initial jobless claims figures will be published. The market might again move a lot after the release, as the US GDP is expected to register a rate of 3.0%, down from the previous reading of 4.6%. Moreover, the fed chairwoman Yellen is also scheduled to deliver a speech during the NY session. So, one might witness a lot of action in the coming session in the US dollar. More gains cannot be denied moving ahead.
This analysis is taken from today’s Daily Market Forecast, which also includes trade opportunities on: GBPUSD, GBPCHF, AUDCAD, USDCAD, USDJPY, CADJPY, AUDJPY and NZDUSD.
Get it HERE: Vladimir’s Markets Forecast
Trade carefully friends. Happy trading!
