Loonie consolidating in narrow range between 1.311875 and 1.31650 for past three trading session after hitting 2-1/2 low. The pair lost more than 100 pips after Fed kept its interest rates unchanged and pledges ‘patience’ stance on further hike. Canadian GDP data released yesterday shows that Canadian economy contracted slightly at -0.1% in the month of Nov .It is currently trading around 1.31405.
Markets eye US Non Farm payroll data which is to be released today for further direction . Any adverse change in average earnings will have major impact on USD.
On the higher side near term resistance is around 1.3170 and any break above targets 1.3197 (100- day MA)/1.3255/1.3300.
The near term support is around 1.3110 (200- day MA) and any violation below targets 1.3070 (300-day EMA)/1.3025.
It is good to sell on rallies around 1.3160 with SL around 1.3200 for the TP of 1.3070.
