Forex Marketz Daily Forex News – Fully Markets Update
The Canadian dollar (CAD) is still taking advantage of the general weakness being seen with the almighty U.S. dollar (USD). The headline USD/CAD currency exchange rate as seen on the above hourly MT 4 chart, has fallen to a six month low price point overnight. This Forex market then retraced losses from 1.3233 and is trading back above 1.3260.
Today’s economic calendar out of Canada is quiet today. This means the commodity and sentiment linked Canadian dollar will react to economic news out of Europe and the United States. This includes Covid-19 headlines. The headline event on today’s calendar will be the monetary policy and rate decision from the Bank of England.
The BOE will also release their economic projections and press statement. The United Kingdom will publish their monthly construction purchasing managers’ index (PMI) data as well as their monthly asset facility purchases.
The United States has labor data on the calendar today. This includes the Challenger jobs cuts as well as weekly unemployment claims data and continuing claims. Germany is publishing monthly factory orders data and Italy will release monthly industrial production data.
Daily Canadian Dollar Technical Analysis (USD/CAD)
Looking at price action, the U.S. dollar is still struggling against the Canadian currency and below a key horizontal pivot level at 1.3289/90. On the downside there is a layer of support in play at 1.3233 with the round number at 1.32 then coming into focus.
The December 201 high price point that lines up at 1.3180 would then come into focus. The next layer of technical support lines up at the 9 January high price point at 1.31 with the next layer of support coming into play at 1.3030. This is the last barrier before the critical downside level at 1.30.
On the upside, there is a congestion zone in play at 1.3330 to 1.3335. The next upside congestion zone then lines up at 1.3070 to 1.3075. This area is supported by the two hundred (200) hour moving average (HMA). The next upside barrier comes into focus at 1.3375.
