USD/CAD is expected to continue its upside movement. The pair is holding on the upside after today's upward acceleration due to better than expected data. The rising 50-period moving average is playing a support role. The relative strength index stands firmly above its neutrality level at 50 and lacks downward momentum. Therefore, as long as 1.2975 is not broken, look for a new challenge with targets at 1.3125 and 1.3160 in extension.
Fundamental Overview: As far as today's data is concerned Canada's official international reserves declined $1.44 billion in May, the federal Finance Department reported Today. At May 31, the reserves of foreign currencies, gold and other monetary assets totaled $80.78 billion, down from $82.22 billion a month earlier. All reserve figures are reported in U.S. funds. The government reported no official intervention in the foreign-currency market in May and there were no gold holdings at the end of the month.
Chart Explanation: The black line shows the pivot point. Currently, the price is above the pivot point which is a signal for long positions. If it remains below the pivot point, it will indicate short positions. The red lines show the support levels, while the green line indicates the resistance levels. These levels can be used to enter and exit trades.
Resistance levels: 1.3125, 1.3160, 1.3185
Support levels: 1.2975, 1.2940, 1.2895
The material has been provided by InstaForex Company - www.instaforex.com