Forex Marketz Daily Forex News – Fully Markets Update
The Canadian dollar (CAD) has fallen against the U.S. dollar (USD). Looking at the above daily USD/CAD MT 4 price chart, price action is consolidating after hitting a new monthly high price, yesterday, and is just below the one hundred (100) day simple moving average (SMA).
The commodity linked Canadian dollar which has exposure to the price of oil is reacting to global coronavirus pandemic (Covid-19) news which could impact the demand for the price of oil, sending oil prices lower and with that, pressuring the Canadian currency.
In Europe, early this week. Spain started nationwide curfew. Yesterday, France began a second nationwide national lockdown for a month. The Eurozone’s largest economy, Germany, yesterday, also started a second new nationwide lockdown.
In the United States, incumbent President Donald Trump has signaled, yet again, he will not accept the results of the election if he loses. This is supporting the safe haven U.S. dollar (USD).
Today, Canadian dollar traders will monitor Canada’s monthly gross domestic product (GDP) data. The United States will publish the Federal Reserve’s preferred measure of inflation. This is the monthly core and headline PCE price index.
The monthly Chicago purchasing managers’ index will also be released as well as monthly consumer spending. The University of Michigan will release their monthly revised consumer sentiment index as well as their revised monthly consumer price index.
Daily Canadian Dollar Technical Analysis (USD/CAD)
Looking at price action, the USD/CAD Forex market did not close above the 100 day SMA despite setting a new high price point for the month. The greenback is also trading below the falling trend line in play since 30 July.
With that said, a pullback to the 15 October high price point at 1.3260 could occur. Below this level, the key support level lining up at 1.32 come into play with the technical layer of support at 1.3180 then popping up on the radar. Further down, the net downside barrier lines up at 1.3080/81.
A daily close above the 100 day SMA at 1.3330 opens the door to challenge the key technical upside barrier lining up at 1.34. The next upside barrier lines up at the July high price point at 1.3460. The two hundred (200) day simple moving average at 1.3545 then comes into play.
