Forex Marketz Daily Forex News – Fully Markets Update
The U.S. dollar is trading around 1.2325 against the Canadian currency during the early Asian trade session on Friday. The USD/CAD currency exchange rate has found support at the fifty hour simple moving average (SMA) as well as a rising trend line in play since 11 June.
Today, the United States will publish the U.S. Federal Reserve Board’s preferred indicator for inflation. This is the monthly PCE price inflator. The University of Michigan will release their final monthly consumer sentiment index. There is no economic data scheduled to be released by Canada.
The United Kingdom will feature the private monthly Gfk consumer confidence gauge as well as the monthly CBI realized sales index. The euro area will publish monthly private loans data.
Daily U.S. Dollar Technical Analysis (USD/CAD)
Looking at price action on the above USD/CAD four (4) hour MT 4 price action chart, the relative strength index (RSI) is steady as the U.S. dollar failed to break above the key horizontal barrier in play at 1.2345. There are several key layers of technical resistances that worry U.S. dollar buyers at this point.
With that said, an upside break, on a daily close basis, of the resistance level at 1.2345 is not a clear signal for the USD/CAD bulls to rush in. However, this should open the door to challenge the upside barrier in play at 1.2390 with 1.2430 then coming into focus.
On the downside, the USD/CAD Forex market has initial technical support lining up at 1.2295. A daily close below this level brings the mid-June high price point into play. This downside layer is at 1.22. Below 1.22, there is a congestion zone lining up at 1.2130 to 1.2120.
The next layer of technical support lines up at the key round number of 1.21. Below that, the Loonie Forex market could make a run at 1.20 then 1.1950.
