Forex Marketz Daily Forex News – Fully Markets Update
The Canadian dollar (CAD) has gone on the back foot against the U.S. dollar (USD). The benchmark USD/CAD currency exchange rate on the above four (4) hour MT 4 chart is starting to falter a bit as the recovery runs out of steam ahead of key labor data from the United States and Canada.
The almighty U.S. dollar started losing steam after the Federal Open Market Committee (FOMC), the monetary policy arm of the Federal Reserve Board, released their monthly monetary policy and rate decision minutes showed that monetary policy decision makers were very worried about the effect of the coronavirus (Covid-19) will have on the economic recovery.
Today Forex traders who trade the Canadian dollar will watch labor data. Canada will release their monthly non-farm employment change. The United States will publish their weekly first time unemployment claims data as well as continuing claims.
The Philadelphia Fed will publish their monthly manufacturing index and traders will dissect the monthly CB leading index. Germany will publish monthly factory gate prices, known as the producer price index (PPI) and the United Kingdom is releasing monthly CBI industrial order expectations.
Daily Canadian Dollar Technical Analysis (USD/CAD)
Looking at the above four hour MT 4 price chart, the Canadian dollar had been on the offensive against the greenback before the U.S. dollar bulls entered the market breaking above a short term resistance line as the USD/CAD currency exchange rate recovered from a monthly low price point. Looking at the relative strength index (RSI), this technical indicator pulled back from oversold which was a good sign for bulls in this Forex market.
A daily close above the technical upside barrier in play at 1.3295 will open the door to challenge the one hundred (100) hour moving average lining up at 1.3305. The next upside barrier comes into play at 1.3335.
On the downside, a daily close below 1.3180, a former upside turned technical support barrier, opens the door to challenge a multi-week low price point in play at 1.31. The next downside barrier lines up at 1.30 with 1.2950 then coming into play.
