The pair continues growing amid a significant strengthening in the US Dollar . The American currency was supported by the publication of April FOMC Minutes that substantially increased the probability of an hike in the US at June’s meeting of the regulator. According to the Federal Funds , at present the probability stands at more than 30%.
At the same time, the pair was slightly pressured amid expectations of the release of data in Canada, which is due later today.
Support and resistance
on the is moving up while the price range is narrowing. is growing and giving a quite strong buy signal. is turning horizontally as it reached the overbought zone.
The indicators recommend waiting for clearer trading signals.
Support levels: 1.3037 ( local low), 1.3000 (psychologically important level), 1.2962, 1.2900, 1.2844, 1. 2800 (12 May low), 1.2757.
Resistance levels: 1.3100 ( local high), 1.3153 ( local high), 1.3218 (5 April high), 1.3300, 1.3370 (16 March high).
Long positions can be opened after the price consolidation above the level of 1.3100 (with the appropriate indicators signals) with targets at 1.3218, 1.3300 and stop-loss at 1.3037. Validity – 2-3 days.
Short positions can be opened after the breakdown of the level of 1.3000 with targets at 1.2900, 1. 2800 and stop-loss at 1.3100. Validity – 2-3 days.