Forex Marketz Daily Forex News – Fully Markets Update
Looking at the USD/CAD currency exchange rate on the above hourly MT 4 price action chart, the U.S. dollar continues to catch as bid as price action recovers from 1.2580. The USD/CAD is trading near the congestion zone at 1.2625 to 1.2630.
Solid economic data is helping the almighty dollar as are a spike in Treasury yields. Also, weak crude oil prices are weighing on the commodity linked Canadian dollar. This is boosting the USD/CAD currency exchange rate higher.
On the economic calendar, Canada is publishing their monthly gross domestic product (GDP) data and the world’s largest economy will release monthly Chicago Fed purchasing managers’ index (PMI) and weekly crude oil inventory data.
The euro area is publishing their monthly flash consumer price index (CPI) as is Italy. Germany is releasing monthly labor data.
Daily Spot US Dollar Analysis (USD/CAD)
Looking at the above price action chart, the U.S. greenback is trading within a rising trend channel. This upwards sloping price channel has been play for around a week. Also the technical indicators remain constructive for more probable gains in the USD/CAD Forex market.
With that said, a daily close above the congestion zone at 1.2625 to 1.2630 is needed for more gains at this point. If this happens the greenback could then challenge the upside of the rising trend channel which is around 1.2660 to 1.2665.
The next layer of technical resistance lines up at the round number of 1.27 with a congestion area coming into play at 1.2735 to 1.240. The next upside barrier comes into play at the multi-year price point from 18 March.
On the downside the USD/CAD sees immediate technical support lining up at 1.2580 with the next downside barrier coming into play at 1.2565. A sustained close below 1.2565 opens the door for the key psychological layer of technical support lining up at 1.25.
