FX.co ★ Technical analysis and trading recommendation for USD against CAD & YEN for March 30, 2015

The annual score for production and services in the United States increased by 2.2 percent in the fourth quarter of 2014, according to the "third" estimate released by the Bureau of Economic Analysis. Chair Janet Yellen said she expected the Federal Reserve to raise interest rates this year, and that subsequent increases will be gradual without following a predictable path. She said: "I expect that conditions may warrant an increase in the federal funds rate target sometime this year". After the initial increase, officials won't follow “any predetermined course of tightening" that involves similar-sized increases at regular intervals, Yellen said on a research conference sponsored by the Federal Reserve Bank of San Francisco, San Francisco, California March 27, 2015. The US dollar rebounds against most major pairs.

USD/CAD

We recommended buying in case the price corrected towards 1.2400 or 1.2370. The pair made a low at 1.2410 and changed its direction towards 1.2630. Now, we are in money of 200 pips. We request traders who followed my trade to move their stop loss at 1.2500. Until the price closes above 1.2530, bulls remain in play. The pair prepared a strong support base between 1.2350 and 1.2300 at 200MSMA. Until prices close above 1.2300, buying on dips still remains in play.

We have been recommending buying with sl 117.50. The pair made a low at 118.33, facing strong resistance at 50Dsma. In case the price closes above 50Dsma, we can expect another near-term rally. The price trading pattern is framed between 119.60 and 118.80. We recommend intraday selling below 118.90 with targets at 118.40. A daily close below 117.50 leads to another leg down towards 116.00 and 115.00. Bulls are safe until the price closes above 117.50 100Dema. Trade: Positional buying with sl 117.50 Intraday- buying above 119.60 with targets 120.00 and 120.30. In the hourly chart, we can clearly observe inverse head and shoulder formation. We request traders who followed my trade to move their stop loss at 118.90 with the target at 120.00. Those who has not taken any position yet, can buy above 119.50.