08.07.201506:10 Forex Analysis & Reviews: Technical analysis of USD/CAD for July 08, 2015

The US Census Bureau and the US Bureau of Economic Analysis, through the Department of Commerce, announced that the goods and services deficit was $41.9 billion in May, up $1.2 billion from $40.7 billion in April.

The number of job openings little changed by 5.4 million in May hitting the highest level since the series began in December 2000, the US Bureau of Labor Statistics reported yesterday.

Canada's exports declined 0.6% in May while imports edged up 0.2%. Canada's merchandise trade deficit with the world widened from $3.0 billion in April to $3.3 billion in May.

Ahead of the FOMC meeting minutes and Canada's building permits, USD is trading higher against CAD at today's Asian session.

At yesterday's session, the pair rejected at 1.2780 falling by 80 pips from the highs. It reached a high at 1.2780 and fell back. The fall in oil prices put pressure on CAD against USD. The 20Wsma is found at 1.2400 and the parallel resistance is seen at 1.2800 and 1.2835. Bulls made a strong base in different levels initiated at 1.2200 and extended to 1.2300 and 1.2400 later. The hourly oscillators indicate the overbought market. Negative divergence is seen in the h4 chart. We can observe higher highs and higher lows in the daily and hourly charts. USD/CAD is the only pair which took an advantage from the Greek saga in the near term. Falling oil prices also help CAD. Intraday support is found at 1.2720, 1.2700, and 1.2660. Resistance is seen at 1.2785, 1.28000, and 1.2835. Ahead of the FOMC meeting minutes, we are not advising safe trades. Our advice is to wait for one more day. In case the pair manages to close above 1.2835, we will resume buying with a target at 1.3150. Today, the pair opened on a bullish note.

Risky traders can buy above 1.2785 with targets at 1.2800 and 1.2830. Risky sellers should use rises to sell with sl 1.2835 on a closing basis hold for the next 2 or 3 days.