Forex Marketz Daily Forex News – Fully Markets Update
The almighty U.S. dollar is catching a bid against the Canadian currency around 1.2078 as we head into the weekend. The USD/CAD currency exchange rate is looking to recover some of yesterday’s losses as it recovers off the three day old support line.
Neither Canada nor the United Kingdom are releasing economic data on Friday. The United States will publish the Federal Reserve’s preferred measure of inflation. This is the core and headline monthly PCE index.
The Chicago Federal Reserve will release their monthly purchasing managers’ index (PMI). The world’s largest economy will also release monthly personal spending.
France will publish some economic data today. The euro area’s second largest economy is publishing monthly import prices and their preliminary quarterly gross domestic product (GDP) data.
Daily US Dollar Technical Analysis (USD/CAD)
Looking at the above four hour USD/CAD four (4) hour MT 4 price action chat, the dollar’s consolidation against the Loonie is likely to continue in the near term.
There are strong layers of support in play in the USD/CAD Forex market and the broad strength in the Forex universe for the U.S. dollar for now.
The MACD histogram, however, is flashing a potential bearish signal. On the upside the one hundred (100) hour exponential moving average (EMA) and falling trend line from 30 April at 1.2130 should hold on the upside.
A sustained close above the upside barrier at 1.2130 opens the door for the USD/CAD currency exchange rate to challenge the technical layer of resistance in play at 1.22. This is the 13 May high price point. The next upside barrier is the 2018 yearly closing price point at 1.2250.
On the downside a daily close below 1.2070 will bring a rising trend line from 18 May into play. This downside barrier lines up at 1.2040. The key psychological barrier lining up at 1.20 then comes into focus.
