Headlines the Economic Calendar on Wednesday
Canada Inflation Data: The Canada CPI is expected to come out at 01% m/m and y/y inflation is expected to stay at 2.2% in December. On the other hand, Core CPI is expected to be 1.9%.
US Existing-Home Sales: Existing Home Sales measure monthly sales of previously owned single-family homes and is expected to rise by 1.3% m/m in December. If the data post a weak performance as indicated by the consensus estimate, it would be negative for the US dollar.
Bank of Canada Rate Decision: The Bank of Canada is widely expected to keep interest rates on hold today. The Rate Decision is due at 15:00 GMT today with a press conference to follow an hour later. Any surprising revision would lead to volatility in Canadian dollar this week.
Technical Analysis:
EUR/USD: The EUR/USD pair found sellers from the key resistance level of 1.1114 yesterday. If the downward movement continues and we will follow the daily support level at 1.1052. On the other hand, if the price rises above 1.1114, the next resistance level will be at 1.1165.
Support : 1.1052 - 1.0007 - 1.0965
Resistance : 1.1114 - 1.1165 - 1.1237
GBP/USD: The GBP/USD pair moved up above the 1.3046 main support level yesterday. If the pair stays above 1.3046 on a daily basis, the key resistance levels can be seen at 1.3136 and 1.3231. On the other hand, if the pair falls below 1.3046, the next support level is holding at 1.2947.
Support: 1.3046 - 1.2947 - 1.2838
Resistance: 1.3136 - 1.3231 - 1.3313
USD/JPY: We will closely watch the 109.72 daily support level in the USD/JPY pair. If the pair stays above 109.72 on a four hourly basis. We will face 110.36 as the daily resistance level. Otherwise, If the price drops below 109.72, we will follow the support level at 109.39.
Support : 109.72 - 109.39 - 109.09
Resistance : 110.36 - 110.93 - 111.52
USD/CAD: Ahead of Bank of Canada Rate Decision, the USD/CAD pair is now trading above the 1.3071 daily support level. As long as the price stays above 1.3071 on a daily basis, the rise may gain more momentum and we will see the resistance level at 1.3123. On the other hand, if the price drops below 1.3071, the next support level can be found at 1.3009.
Support: 1.3071 - 1.3009 - 1.2943
Resistance: 1.3123 - 1.3181 - 1.3233
USD/ZAR: The USD/ZAR pair pulled back from the 14.5625 daily resistance level. If the downward movement continues below 14.5625, we will follow the support level at 14.1865. On the other hand, If the pair jumps up above 14.5625, the resistance level can be seen at 14.8380.
Support: 14.1865 - 13.8789 - 13.2465
Resistance: 14.5625 -14.8380 - 15.1896
USD/CHF: The USD/CHF pair moved up above the daily level of 0.9701. If the price stays above 0.9701 on a daily basis. we will see face 0.9757 as a resistance level. On the downside, If the pair drops below 0.9701, we will see the next support level at 0.9656.
Support : 0.9701 - 0.9656 - 0.9598
Resistance : 0.9757 - 0.9831 - 0.9877