Forex Marketz Daily Forex News – Fully Markets Update
The U.S. dollar continues to lose momentum as the USD/CAD currency exchange rate is challenging the two hundred (200) hour simple moving average. Forex traders will be looking at key retail sales data out of the U.S. as they wait on tomorrow’s Federal Reserve monetary policy and interest rate decision.
The USD/CAD Forex market had fallen to a low price point at 1.2137 during the Asian trade session on Tuesday before finding support and bouncing higher. With that said the correction lower from the monthly high price point continues for the greenback which has seen two days of losses.
Forex traders will be focusing on the United States economic calendar. U.S. dollar traders will pay close attention to monthly core and headline retail sales as well as the monthly producer price index (PPI). With inflation worrying traders, any changes to the upside with factory gate prices can be volatile for the U.S. dollar.
Canada is releasing monthly housing starts numbers. The United Kingdom has key labor scheduled. The UK will publish their monthly unemployment rate, claimant count change and average hourly earnings (3M/3M).
The euro area has inflation data on their calendar. Germany will release their final monthly consumer price index (CPI). The European Union will publish monthly trade balance data.
Daily U.S. Dollar Technical Analysis (USD/CAD)
The above four hour MT 4 price action chart notes a positive relative strength index (RSI). The U.S. dollar is also still trading above the 200 hour simple moving average.
The first layer of technical support for the USD/CAD Forex market lines up at 1.2122. The next downside barrier lines up at 1.2090. This is a rising trend line in play since 1 June.
On the upside, a daily close above 1.2150 opens the door to challenge the key horizontal resistance level near 1.2180. The next upside barrier is at 1.22 with the mid-May high price level at 1.2205 then coming into play. The next layer of technical resistance is at 1.2265.
