USD/CAD (-35)

recent market moves give a boost to USD and USD index, and in case of CAD picked it up to a point of strong resistance. On a daily chart 100 SMA serves as support and as a resistance, and we are going to use it as a resistance, in addition to downward sloping trend line (best seen on lower time frames 1,2, and 4h time frames). Oil still looks firm above $80, currently @ $81.22, and provides a support to strong CAD. Recent jobs data moved CAD to a position where it is now, but we believe that market is going to move past it, once oil firms up in $80 level. Tomorrow FOMC statement can toss all trades out the window, so extreme caution goes without saying, possibly exiting the trade before the release. CAD news release of housing start and NHPI is at 12:15 & 12:30 GMT, Aug 10. Positive data goes in favor of our trade. Stops are placed at 1.0325 and target 1.0160