The dollar index gave a strong close after a 5-week losing streak. The index managed to close above 20wsma and 100D&Ema. It was bulls' greatest development over the past week. We forecasted on May 18 that the USDX and USD related pairs are likely to change the direction. The USDX closed at 96.27 3.5% compared to the previous week's closing. The nearest resistance is seen at 96.30 and 96.50. In the four-hour chart, the index gave a bullish break of inverse head and shoulder aiming at 97.50 initially. Median resistance is seen at 96.85 50Dsma.
USD/CAD
The pair showed a 5-week falling streak and gave a strong bullish close last week. The pair regained its 4-weeks losses in just 1 week. After 2 weeks of consolidation between 1.1940 and 1.1920 the pair is finally on a verge of a bullish breakout. On May 15, we advised bottoming in process was likely to hit 1.2300 and 1.2350. Now, the pair gained 300 pips from our buying level.
The pair made a triple bottom at 1.2169 edging up higher towards the key trend-change level. The nearest resistance is seen between 1.2321 50Dsma and 1.2360 100Dsma. In case of a daily close above 1.2360, bulls will aim at a new high. Today, the pair has opened on a bullish note. Weekly support is found at 1.2169 and 1.2100. Weekly resistance is seen at 1.2400 20Dsma. A week close is above 1.2400, bulls aim at 1.2650 immediately.
Intraday: Intraday resistance is seen at 1.2325 and 1.2360. Support is found at 1.2278 and 1.2240. The buying opportunity is available above 1.2325 like 1.2350 and 1.2400. Traders, please keep in mind that 1.2360 is the crucial level to handle. Selling opportunity is available below 1.2250 aiming at 1.2225, 1.2210, and 1.2200. The selling pressure will emerge below 1.2200 towards 1.2170 and 1.2150.
To contact the author of this analysis, please email- joseph.wind@analytics.instaforex.com
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