FBS: buy USD/CAD
USD/CAD recovered to the 1.0500 mark, getting prepared for a breach above this level. The pair is forming a kind of a bullish flag. We recommend going long on the pair at 1.0520 with an initial target of 1.0570. Next resistance lies at 1.0600/10. Near-term support lies at 1.0470.
US will release its preliminary Q2 GDP and unemployment claims data at 12:30 GMT (forecasts – positive). In case of strong US data we expect a strong push upwards. At the same time Canada is scheduled to publish current account and raw materials price index.
Chart. USD/CAD H4