Forex Marketz Daily Forex News – Fully Markets Update
The U.S. dollar remains pressured below the fifty (50) hour simple moving average against the Canadian currency. The USD/CAD currency exchange rate remains weak trading around 1.23 during the Asian trade session.
The almighty dollar, or greenback, had hit a four day high price point on Tuesday before being capped at the above mentioned 50 hour simple moving average. The greenback then reversed lower.
Today, all eyes will be on labor data out of the United States. The private monthly ADP non-farm payroll will be published. The U.S. is also releasing weekly crude oil inventory data as well as the final monthly services purchasing managers’ index (PMI).
The euro area is publishing monthly purchasing price index (PPI) data. Italy and Spain will publish monthly labor data. Italy will also release their final monthly services purchasing managers’ index.
Canada and the United Kingdom have no big economic data releases scheduled for today. Tomorrow, Thursday, is the Bank of England’s Super Thursday. The Bank of England will announce monetary policy and interest rates.
The BOE will also publish quarterly economic forecasts and the Governor of the Bank of England will hold a press conference.
Daily US Dollar Technical Analysis (USD/CAD)
Looking at the above USD/CAD four hour price action chart, the recent pullback seen with the American dollar coincides with a downward sloping MACD momentum indicator. This is encouraging sellers in this Forex market.
While the USD/CAD currency exchange rate trades below the 50 hour simple moving average, the multi-month low price point in play at 1.2265 could be challenged.
With that said, the 2018 low price point in the congestion area at 1.2250-1.2245 would need to break first on a daily close basis. This would bring the late 2017 low price points at 1.2065 – 1.2070 into play next.
On the upside, a daily close above the 50 hour simple moving average at 1.2355/6 opens the door to challenge the March low price point at 1.2365. The next upside barrier lines up at 1.2420 with 1.2465 then coming into focus.
