Impact on USD
The US dollar was ignited by the stronger industrial production data. Industrial production jumped 1.3 percent after a 0.1 percent increase in October. But the other data such as building confidence index drops 1 point in December. Following a four-point uptick last month, builder confidence in the market for newly built single-family homes fell one point in December to 57 according to the National Association of Home Builders/Wells Fargo Housing Market Index (HMI), released yesterday. After the mixed US data, traders are focused on the Federal Reserve meeting this week.
Technical analysis:
The USD made a fresh 5-year high against the CAD after the mixed batch of economic data at yesterday's session. We have been recommending buying on every dip with the targets at 1.1570, 1.1640, and 1.1740 on a positional basis. The pair met my second target as well. Ahead of the minutes on the Federal monetary policy, today the pair opened with a bearish basis. As of now, the pair is unable to break the previous high. At yesterday's session, the pair managed to breach the 200Msma and 1.6446 and managed to trade above these levels. We recommend fresh buying above 1.1675 with the targets at 1.1720 and 1.1740. The pair has hourly support at 1.6630, 1.5590, and 1.5580. Today, the focus has shifted to Canadian manufacturing and sales report as well as US building permits and flash manufacturing PMI. The intraday support is at 1.1515. We recommend selling only below 1.1500 levels.
The material has been provided by InstaForex Company - www.instaforex.com
