Forex Marketz Daily Forex News – Fully Markets Update
After an impressive run higher this week, the U.S. dollar has retreated against the Canadian currency as the benchmark USD/CAD currency exchange rate is trading near 1.2345. This Forex market hit its highest price point since 28 April on Thursday.
After a busy week, which included a hawkish U.S. Federal Reserve monetary policy statement, press conference and updated economic projections, which supported the U.S. dollar, Friday’s economic calendar is quiet.
There was also the G-7 summit as well as a key meeting between President Joe Biden and Russian President Vladimir Putin. The United States has no macroeconomic calendar data scheduled to be released today and neither does Canada.
Germany is releasing monthly producer price index (PPI) data. The Eurozone will publish their current account. The United Kingdom is publishing monthly retail sales data.
Daily U.S. Dollar Technical Analysis (USD/CAD)
Looking at the technical indicators on the above four hour USD/CAD MT 4 price action chart, the relative strength index (RSI) is in overbought territory. Also, the American dollar is pulling back from a three month old resistance area in play at 1.2365 to 1.2350.
The first layer of technical support lines up at 1.2320 for the USD/CAD currency exchange rate. A break below this level opens the door to challenge the key support level at 1.23. The next downside barriers come into play at the April swing low price points.
These support levels are at 1.2265 and 1.2260, respectively. Further downside levels line up at 1.22 and the round number of 1.20.
On the upside, this Forex market has near-term resistance in play at 1.2365. A sustained close above 1.2365 opens the door for 1.24 with the 27 April high price level at 1.2420 then coming into focus.
A daily close above 1.2420 brings the low price points at 19 March and 21 April into focus. Respectively, these upside barrier line up at 1.2465 and 1.2470.
