Forex Marketz Daily Forex News – Fully Markets Update
The headline USD/CAD currency exchange rate is trading around 1.3380 as Forex traders wait on the FOMC monetary policy and rate decision later today. The Canadian dollar (CAD), on the above daily MT 4 chart, has formed a bullish candlestick pattern.
The USD/CAD Forex market did bounce off a seven week low price point on Tuesday but the short term ten (10) day moving average is capping any gains for the Canadian dollar.
The Canadian economic calendar has no data releases on the calendar today. Today Forex traders will be watching for the monetary policy and rate decision from the Federal Open Market Committee (FOMC). The FOMC is the monetary policy arm of the U.S. central bank, also known as the Fed.
The FOMC will also release their monetary policy statement after the decision. Forex trader will pay very close attention to FOMC Chair Jerome Powell who will speak to the press. The world’s largest economy will also publish monthly pending home sales and weekly crude oil inventory data. The inventory levels could produce some price action volatility with the Canadian currency as Canada is an oil export country. The United States is also releasing their monthly goods trades balance data.
Germany, the Eurozone’s largest economy, is releasing monthly import price data today. The United Kingdom will publish their annual BRC price index data as well as monthly housing data.
Daily Canadian Dollar Technical Analysis (USD/CAD)
Looking at the above price action chart and the relative strength index (RSI), is moving into oversold territory which could see the USD/CAD Forex market make another attempt at the 10 day moving average in play at 1.3435.
The next upside barrier lines up at the 23 June low price point at 1.3485. The next upside barrier lines up at the psychological round number at 1.35 with the congestion zone in play at 1.3645 to 1.3650 then coming into focus.
In the downside, the first layer of technical support lines up at 1.3330 with the June monthly low price point at 1.3315 then coming into play. The round number at 1.33 is the next layer of technical support.
