Forex Marketz Daily Forex News – Fully Markets Update
Looking at the Canadian dollar (CAD) trading against the U.S. dollar (USD) on the above hourly USD/CAD MT 4 chart, this Forex market remains under pressure. Forex traders are reacting to not only weaker than expected U.S. retail sales but ongoing election drama in the United States. This is causing some broad based weakness in the greenback.
The global economic calendar is quiet today. Things will pick up tomorrow into the end of the week. Canada has not macroeconomic data releases on Tuesday and the United States is releasing minor housing data.
Today, the world’s largest economy will publish monthly building permits and housing starts data. The economic calendars in both the European Union and the United Kingdom also have no economic data releases today.
With that said Forex traders will be watching geopolitical events closely. The commodity and sensitive linked Canadian dollar (CAD) will be reacting not only to headlines surrounding U.S. elections but political tension between the world’s two largest economic superpowers.
President Donald Trump continues with his unproven assault on absentee balloting. This is the same as mail in ballots. He says that the election can be rigged or stolen and he will not allow that. This is causing an unprecedented constitutional crisis in the United States of America. General elections are scheduled for 3 November.
The U.S. Post Master General, a key Republican Party donor, will testify in front of Congress on 24 August. Today, the Democratic Party will start their convention as their candidate for president, Joe Biden, prepares to officially accept the party’s nomination.
Also, the U.S. has tightened restrictions on China’s tech behemoth Huawei. These new restrictions make it even more difficult for the tech company to have access to chips.
Daily Canadian Dollar Technical Analysis (USD/CAD)
Looking at the above hourly chart and price action in the USD/CAD currency exchange rate, the Canadian dollar is in control as this headline Forex market trades within a descending triangle chart formation. With that said, the MACD histogram is starting to show a possible directional change with price trend.
This has yet to be realized. A daily close above the upside barrier in play at 1.3235 will open the door to challenge the one hundred and two hundred (100,200) simply moving averages.
These upside barrier line up at 1.3250 and 1.3290. The next upside barrier lines up at 1.3350 then the 7 August price point high at 1.34 comes into play.
A daily close below the downside barrier lining up at 1.3190 will open the door to challenge the technical support in play at 1.3150 with the key level at 1.31 then coming into focus.
