USDCAD Scalps Face 1.25 Key Resistance Ahead of BoC, GDP
- USDCAD rally approaching key near-term resistance
- 1.25 in Focus heading into BoC / GDP
- Event Risk on Tap This Week
Chart Created Using FXCM Marketscope 2.0
- USDCAD rally targets key resistance confluence region at 1.2484 -1.2503
- Breach targets resistance objectives at 1.2559 (2015 HDC) / the MLP
- Interim support 1.2376 backed by the April ML / 1.2268- bullish invalidation
- Daily momentum targeting 60-threshold – Breach would keep topside bias in play
- Event Risk Ahead: Bank of Canada Interest Rate Decision tomorrow and U.S. & Canada 1Q GDP on Friday
Notes:The USDCAD is eyeing down key near-term resistance into the 1.25-handle ahead of the BoC tomorrow with the long-side at risk for a pullback below this threshold (bearish invalidation). Interim support rests at 1.2375 backed by the lower MLP (dashed) & the median-line off the April low (bullish invalidation ~1.2321).
Bottom line: we’ll be looking for short-triggers heading up into resistance for a possible pullback into median-line support. A breach above the 1.25-figure keeps the long-bias in play targeting topside objectives at the 2015 high-day close at 1.2559 backed by 1.26374 and 1.2710. A quarter of the daily ATR yields profit targets of 25-28 pips per scalp. Caution is warranted heading into Friday’s event risk with the release of both the U.S. & Canadian GDP figures likely to fuel added volatility on the loonie & dollar crosses.
* It’s extremely important to give added consideration regarding the timing of intra-day scalps with the opening ranges on a session & hourly basis offering further clarity on intra-day biases.
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Relevant Data Releases
Other Setups in Play:
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---Written by Michael Boutros, Currency Strategist with DailyFX
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