Technical analysis and trading recommendation for USDX and USD/CAD for May 08, 2015 Market Analysis Review

In the week ending May 2, the advance figure for seasonally adjusted initial claims was 265,000, showed an increase of 3,000 from the previous week's unrevised level of 262,000. This is the lowest level for this average since May 6, 2000 when it was 279,250.

Today, traders eye non-farm employment changes and employment rate.

USDX: The dollar index is likely to make a double bottom at 93.88 changed the directions after the positive job data. Intraday resistance is seen at 94.95-95.00. If today's economic data support bulls, they can make 96.00. Intraday support is found at 94.30. The positional picture favors bears aiming for 93.25 and 93.00, which is our near-term target.

USD/CAD

The total value of Canadian building permits rose 11.6% to $6.9 billion in March from a month earlier. This was the first increase in three months. Also, oil prices dropped from $62.00odd added more fuel to the loonie.

At yesterday's session, the pair showed a 3-day losing streak gained 0.7%. Today, the pair opened on a bearish note. The nearest strong resistance is found at 1.2185 20Dsma and 1.2195 100Dema. Until the price closes below 1.2200, sell on every rise. The strong resistance is seen at 1.2350; bears have the upper hand in the medium term. Intraday support is found at 1.2070 20&50dsma in the four-hour chart. At yesterday's session, we recommended buying with sl 1.2000 with a target at 1.2130 but the price made a high at 1.2163. The pair was rejected at descending trend line. For an intraday session, we recommend buying with sl 1.2070 with targets at 1.2130, 1.2160, and 1.2180. Strong momentum is observed above 1.2205 towards 1.2270 and 1.2300. On the downside, we recommend selling below 1.2070 with targets at 1.2050, 1.2030, 1.2000, and 1.1985.

Resistance: 1.2165, 1.2200, 1.2350

Support: 1.2070, 1.2000, 1.1945

The initial resistance is seen at 1.2129, later 1.2165, and 1.2200 in case they are take out another 100 pips.

Trade: Buying with sl 1.2070, selling below 1.2070

Safe traders - buying above 1.2130 target 1.2165 and 1.2200. Above 1.2200,we can see 1.2300.

The material has been provided by InstaForex Company - www.instaforex.com

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