IMPACT OF USD– The US Census Bureau announced data on retail and food services sales for February that is down 0.6 percent compared to the previous month. Unemployment benefits dropped more than estimated. It shows the labor market is in development mode. In the week ending March 7, the advance figure for seasonally adjusted initial claims was 289,000, 36,000 below the previous week's revised level.
IMPACT OF CAD– The New Housing Price Index (NHPI) fell 0.1% in January as a result of lower negotiated selling prices. That was the first decrease in the national level since July 2010.
USD/CAD
Today, traders eye on the US PPI, consumer data, unemployment rate in Canada (mainly), and employment change.
The pair made a double top at 1.2798. Ahead of series of significant data, CAD is trading lower against USD. The USDX shied to the level of 100.00. A daily close above the 100.00 level leads to 101 and 101.30. Bulls must close above 1.2800 as soon as possible. Bulls can challenge 1.3000 and 1.3250 in case prices close above 1.2800. We advised caution near 1.3000 odd levels, it's a multi-month resistance. The intraday support is seen at 1.2680. Overall, the picture favours buying on dips. We have been recommending buying with sl 1.2350 with targets at 1.2695, 1.2800, 1.2965, and 1.3070 in the near and short term. The level of 1.2798 is done. Fresh buying above 1.2800 with targets at 1.2830, 1.2900, and 1.2965.
USD/JPY
Japan industrial production data yet to release today. Ahead of the data release, the yen is trading lower against the euro at the Asian session. The price is consolidating at a 8-year high. Today, the pair has opened on a bullish note. Intraday support was found at 121.20 and 121.00. We still opt to recommend buying on every dip. Now, we are revising the targets at 124, 125.00, and 125.75. The prices are making higher lows and higher highs on the h4 chart. Support has climbed from 119.80 to 121.00. It's a good sign for further room on the upswing. If the price closes above 121.85 on a weekly basis, we can see 128.00 as well. It's a one side move all the way to new highs. Another upswing looms above 122.0 with targets 123.00 and 123.20 in a day or two. Later, 124.00 and 125.00 are expected. Until a h4 candle closes above 120.80, a long trade remains in play. The overall picture favours buying on dips.
Trade: we remain buyers.
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