Forex Marketz Daily Forex News – Fully Markets Update
The U.S. dollar remains under pressure against the Canadian currency. The benchmark USD/CAD Forex market is trading around 1.2030 ahead of U.S. labor data. This Forex market, on Wednesday, failed to break above 1.2090 keeping the greenback sellers happy for now.
Currently the USD/CAD currency exchange rate is trading near its lowest price level since May 2015.
Affecting the Canadian dollar on the economic calendar is weekly U.S. crude oil inventory data. The United States will also release weekly natural gas inventory data. The Canadian economy has a lot of exposure to crude oil prices as they are a major exporter of the black gold. Canada has nothing on their economic calendar for Thursday.
The United States will release key labor data ahead of Friday’s closely watched monthly non-farm payroll (NFP) report. The Labor Department will also release their monthly unemployment rate, average hourly earnings and labor participation rate. Today, ADP will publish May’s non-farm payroll change.
Also on the American calendar, the Labor Department will publish weekly initial and continuing jobless claims. The United States will also publish the final look at their monthly services purchasing managers’ index (PMI).
The European Union and the United Kingdom is also publishing their final look at their monthly services purchasing managers’ indices. Italy will also publish monthly services PMI data.
Daily US Dollar Technical Analysis (USD/CAD)
Looking at the above USD/CAD four hour MT 4 price chart, the MACD histogram is looking bearish as the U.S. dollar trades below the weekly descending trend line. Sellers seem poised to challenge the key psychological layer of technical support lining up at 1.20.
A daily close below 1.20 opens the door to challenge the next layer of technical support in play at the 2015 yearly low price point at 1.1920. On the upside, immediate technical resistance lines up at 1.2070 with the key layer of resistance at 1.21 then coming into play.
A move above 1.21 opens the door for a horizontal layer of technical support that has been in play since May. This upside barrier is around 1.2140/41.
