Canadian dollar hits week high on account of better than economic data and slight progress in NAFTA talks. Guillermo Malpica head of trade and NAFTA Mexico said that US has “started showing more flexibility last week”. The pair hits low of 1.2975 and shown a minor jump from that level after more hawkish Fed. Fed has kept its interest rates at 1.75% to 2% and has upgraded the assessment of US economy from solid to strong.Market eyes US non farm roll data for further direction.
Technically, pair is facing strong resistance at 1.3100 (50- day MA) and any break above targets 1.31855 (50% fibo)/1.3290.The near term resistance is around 1.3055.
The near term major support is around 1.2960 (100- day MA) and any break below will drag the pair to next level till 1.2900/1.2850.
It is good to sell on rallies around 1.3045-50 with SL around 1.3100 for the TP of 1.2960/1.2900.
