• Dovish shift in Fed expectations post PBOC weighed on USD Wednesday
  • USD broadly stronger today after PBOC’s Yi Gang comments on the yuan returned risk-on in the markets
  • USD/CAD rebounded from yesterday’s 1.2952 base, touched session highs at 1.3016 before edging slightly lower to 1.3004
  • Strong support is seen by Kijun-Sen at 1.2934, while 1.3040  21 DMA is the next immediate hurdle
  • Canadian new house price index and US retail sales data due later in the day will provide further direction to the pair

Resistance Levels:R1: 1.3040 (21 DMA)R2: 1.3083 (Tenkan-Sen)R3: 1.3158 (Daily High Aug 12)Support Levels:S1: 1.2952 (Daily low Aug 12)S2: 1.2944  (Daily Low Jul 30)S3: 1.2934 (Kijun-Sen)

The material has been provided by InstaForex Company – www.instaforex.com