Forex Marketz Daily Forex News – Fully Markets Update
The almighty U.S. dollar is on the back foot against the Canadian currency. The USD/CAD currency exchange rate is trading around 1.21 during the Asian trade session on Tuesday. This Forex market was trading around its lowest price point since 2017 overnight as the USD/CAD market has fallen for four days in a row.
Canadian dollar traders are watching the closure of the Colonial oil pipeline closely. Hackers shut the largest crude oil pipeline in the United States down. They hacked the computer infrastructure and installed ransomware. Canada’s currency has a lot of exposure to crude oil prices.
The rate advantage supports the Canadian dollar which has
sent the USD/CAD Forex market lower. The Bank of Canada (BOC) has announced
plans to taper their monthly asset purchases. The U.S. central bank, in
comparison, has no plans to change their ultra-loose monetary policy settings
anytime soon.
Also weakening the greenback, was April’s soft non-farm payroll report (NFP).
For the first time in a while, Federal Reserve policymakers sent mixed signals.
Dallas Fed President Robert Kaplan says he favors tapering.
Daily U.S. Dollar Technical Analysis (USD/CAD)
Looking at price action on the above USD/CAD hourly MT 4 price action chart, the greenback has picked up a bid around 1.21. Price action remains below the key simple hourly moving averages. These include the fifty, one hundred and two hundred (50, 100, 200) hour simple moving averages.
On the upside there is immediate technical resistance lining up at 1.2132. The next upside barrier lines up at 1.2162 with 1.2190 then coming into play. A sustained close above 1.2190 opens the door to challenge 1.2245 then 1.2250.
On the downside the first layer of technical support is at the psychological barrier of 1.20. Above that level is the downside barrier lining up at 1.2075 then the technical support 1.2048 comes into play.
