The U.S. dollar continues to recover in the USD/CAD currency exchange rate. Price action is moving above the May 2015 low price point but remains within the three day old descending price channel, as seen on the four hour price action chart.
The USD/CAD Forex market, during the Asian trade session on Wednesday, is moving above 1.2066/5 as Forex traders challenge the upside barrier of the above mention falling price channel.
The most volatile event on today’s economic calendar for the U.S. dollar is the Federal Reserve Board, their central bank, releasing their monthly monetary policy meeting minutes. The United States will also publish weekly crude oil inventory data which the Canadian currency has exposure to.
Inflation data is the name of the game today. Canada will release their monthly core and headline consumer price index. The United Kingdom is releasing their monthly core and headline consumer price index, as well. The Eurozone will publish their final monthly consumer price index (CPI). The United Kingdom is also publishing monthly house price index (HPI) data.
Daily U.S. Dollar Technical Analysis (USD/CAD)
Looking at price action on the above USD/CAD four hour price chart, the almighty dollar has been recovering from the downside barrier of the falling channel. Price action is also above the daily upside barrier lining up at 1.2066.
The MACD histogram does have a bearish bias as does the relative strength index (RSI). A daily close above the falling price channel, however, will keep the greenback buyers hopeful.
A daily close above the upside barrier lining up at 1.2085 should be the catalyst USD/CAD traders need to challenge the weekly high price point that is in play at 1.22. The early May high price point lining up at 1.2265 then comes into focus.
On the downside, a daily close below the channel support lining up near 1.1990 brings the downside barrier lining up at 1.1975.