Forex Marketz Daily Forex News – Fully Markets Update
The US Dollar appreciated sharply against its Canadian Dollar counterpart. The USD/CAD saw its biggest rise in nearly two months as the Loonie sold off. We note short term resistance lining up at 1.2270. A daily close above this level challenges the next technical resistance lining up at 1.2380. Should the CAD move higher, pushing the USD/CAD lower, then we note technical support lining up at 1.2138. A break below this level will challenge former resistance and now support at the technical level near 1.2058.
Entering a long USD trade is very tempting. However there is a great deal of US Dollar risk coming up in the near future. We will get the last FOMC meeting minutes soon as well as US inflation as the CPI will be released later this week. Both pose a great deal of Dollar volatility. Thanks to this I will opt to stand aside and wait for a bit longer before entering either a short or long USD trade.