FxWirePro: USDCAD Trade Idea

Loonie is consolidating for past three trading session after hitting low of 1.32032 on Jan 28th 2019. Markets eye progress in US China trade talks and Fed monetary policy for further direction.US Fed is expected to pause rate hike for this year. According to CME Fed watch tool shows that probability of Fed to keep rates unchanged is 99.5% for month of Jan, 94.3% for 20th Mar 2019 and 88.7% for May 1st 2019 Fed meeting. The pair hits high of 1.32860 and is currently trading around 1.32569.

On the higher side near term resistance is around 1.3287 (10- day MA) and any break above targets 1.3304 (55- day EMA)/1.3380/1.3400.

The near term support is around 1.3195 and any violation below targets 1.3114 (200- day MA)/1.3070 (300-day EMA).

It is good to sell on rallies around 1.3300 with SL around 1.3380 for the TP of 1.3070.

Resistance

R1- 1.3300

R2 - 1.3380

R3- 1.3400

Support               

S1- 1.3195

S2- 1.3114

S3- 1.3070