Looking at the U.S. dollar (USD) on the above daily USD/CAD MT 4 price chart, this Forex market continues to lose ground as it is now trading below 1.3120 and has broken below a short term rising trend line that has been in play since 1 September.
The economic calendar for today is not particularly full of high impact events. With that said, Canada is publishing key inflation data. The Great North is releasing their monthly core and headline consumer price index (CPI).
Canada will also publish monthly housing price index (HPI) data. The United States is releasing weekly crude oil inventory data but Forex traders will pay close attention to what members of the Federal Reserve Board have to say.
Two voting members of their Federal Open Market Committee (FOMC), Dr. Loretta Mester and Dr. Lael Brainard are speaking today. The European Union has no economic data scheduled to be released today and the United Kingdom will release key monthly inflation data.
Britain is publishing their monthly core and headline consumer price index (CPI) as well as monthly factory gate prices known as the producer price index (PPI).
Daily U.S. Dollar Technical Analysis (USD/CAD)
Looking at price action on the above USD/CAD chart, the relative strength index (RSI) is normal but traders are looking to take the almighty dollar down to test the technical support level in play at 1.3115.
If the dollar breaks below this downside barrier, the next layer of technical support lines up at 1.31. The September monthly low price point then comes into focus at 1.2994.
On the flip side, a daily close above the technical layer of resistance in play at 1.3160 will bring the falling trend line from 30 September into focus. This upside barrier lines up at 1.3180 with the upside congestion zone, which is supported by the fifty (50) day simple moving average at 1.32 to 1.3210 into focus next.
A sustained close above the 50 day SMA opens the door for 1.3260 with 1.3340 the coming into the picture.