Forex Marketz Daily Forex News – Fully Markets Update
Looking at the USD/CAD Forex market, on the above hourly MT 4 price chart, the U.S. dollar has recovered off the weekly low price point but fallen towards 1.2630 during the Asian trade session on Wednesday.
Forex traders should also note the key one hundred and two hundred (100,200) hour simple moving averages which look bullish as well as a MACD momentum indicator pointing towards more potential U.S. dollar strength.
The Canadian dollar has a lot of exposure to oil prices and data. The United States is releasing weekly crude oil inventory levels but, their monthly labor data will grab the headlines. The private monthly ADP non-farm payroll change, the precursor to the Labor Department’s non-farm payroll (NFP), is scheduled for release today.
The United States is also publishing final monthly services purchasing managers’ index (PMI) data. The U.S. central bank will publish their Beige Book.
Dollar traders are also watching U.S. politics closely. The $1.9 trillion coronavirus pandemic fiscal stimulus package is now in front of the U.S. Senate. Senate Minority Leader, and Republican Party leader, Mitch McConnell says that the Republican GOP will do everything they can to fight it while President Joe Biden is urging Senate Democrats to unite and pass this bill quickly.
In other economic data, the European Union as well as the United Kingdom will release their final monthly services purchasing managers’ index. Italy is publishing their monthly services PMI.
Daily US Dollar Technical Analysis (USD/CAD)
Looking at price action, the USD/CAD Forex market notes immediate support at the 100 and 200 hour SMA confluence. This support level is at 1.2620. The next layer of technical support comes into play at 1.26 with 1.2570 then coming into focus.
A move below 1.2570 opens the door to challenge the multi-monthly low price point lining up at 1.2470.
On the upside, the first layer of technical resistance is in play at the downward sloping trend line in play since last Monday. This level is at 1.2680. The next upside barrier is at the swing high price point at 1.2740.
