Forex Marketz Daily Forex News – Fully Markets Update
Looking at the Canadian dollar (CAD) and above USD/CAD currency exchange rate, the Loonie has made some gains as the U.S. dollar has fallen to 1.3525.
This Forex market remains on the back foot for the second day in a row as Forex traders are waiting on key Canadian retail sales data due later in the day.
The global economic calendar on Tuesday is quiet as there are no high impact events scheduled. At least not from the United States or the Europe Union. Canada will publish their monthly headline and core retail sales data.
The consumer spending data should have an impact on the price action of the Canadian dollar. The great white north is also publishing monthly housing data as the National Housing Price Index (NHPI) will be released.
The United Kingdom will publish their monthly public sector net borrowing data. A couple of items to note for Tuesday. Forex traders will be watching the spread of the coronavirus in the United States which could derail the economic recovery.
This would be good for safe haven asset classes like the U.S. dollar and bad for sentiment linked currencies like the British pound and euro currency. The commodity linked Canadian dollar could also see any gains capped as traders look at safe havens.
Also of note, any headlines out of the European Union surrounding a possible fiscal package could sway financial market sentiment on Tuesday.
Daily Canadian Dollar Technical Analysis (USD/CAD)
Looking at the above four hour MT 4 price chart, the USD/CAD Forex market notes a downside congestion zone in play at 1.3490 to 1.3485. A daily close below his congestion zone opens the door to challenge the 10 June low price point in play at 1.3435.
The next layer of technical support to monitor lines up at 1.3360 with the month low price point then coming into focus at 1.3315.
On the upside, a daily close above an upside congestion in play at 1.3560 to 1.3565 opens the door to challenge the technical layer of resistance in play at 1.3620. This layer is supported by a falling trend line in play since 26 June. The next upside barrier then lines up at 1.3650 with 1.3715 then coming into focus.
