|Day's Range||1.262 - 1.266|
|52 Week Range||1.2062 - 1.3792|
The US dollar has rallied a bit during the week, showing the 1.25 level as an area that traders will be interested in. If we can break above the 1.30 level, then I think that the market should continue to go much higher.
The US dollar has been very noisy during the trading session on Friday, as we have bounced around the 1.26 level. The massive hammer that I see on the hourly chart suggests that we are ready to continue to go to the upside.
FOMC Minutes were not as hawkish as expected, so the USD went down. Minute’s attraction allowed the EURUSD to break the mid-term up trendline and the horizontal support on the 1.229. On USDCAD we do not have to be patient as on the EURUSD.
EURUSD’s recent pullback from 1.2553 seems all set to re-test the two-month old ascending trend-line support of 1.2285, breaking which an intermediate TL figure of 1.2220, together with oversold RSI, might try restricting its follow-on downside. If the pair refrains to respect the 1.2220 level, the 1.2160 and the 1.2100 are likely consecutive stops that it can avail prior to resting on the 1.2085-80 horizontal-line. On the upside, the 1.2415, the 1.2455 and the 1.2520 may entertain short-term buyers before making them confront the latest high around 1.2555. ...
The US dollar has gone back and forth against the Canadian dollar during the week, as we have found the 1.25 level to be somewhat supportive. Looking at the weekly chart, we have made a “higher low”, so we have potential for a move to the upside again.
The USD/CAD is rejecting the trend line and the POC zone 1.2580-1.2600 with a very congested move that still lacks the real bearish momentum. The weakness in oil prices weighs on CAD and that could be the reason for a consolidation without a bearish break. However if the pair keeps rejecting the POC zone we might see a drop to 1.2561, 1.2542 and 1.2512. The pair should find buyers there due to its strong weekly support (W L3) that hasn’t been tested yet.