Forex Marketz Daily Forex News – Fully Markets Update
The USD/CAD currency exchange rate has reversed gains seen overnight to see the U.S. dollar trade below 1.26. The USD/CAD Forex market has tried to recover this week but has not seen any follow through buying.
Today, Canada will be publishing key labor data which should drive the Canadian dollar. Canada is releasing their monthly unemployment rate and unemployment change. Canada is seeing a sharp spike in new Covid-19 cases which could impact job creation supporting safe havens like the greenback.
U.S. economic data, released overnight, was confusing. The Labor Department showed that weekly initial unemployment claims rose for the second week in a row. This is at odds with March’s non-farm payroll report.
According to the NFP, the U.S. economy added 916,000 new jobs. This was the best monthly job creation in the U.S. in seven months. Also, for February, job openings rose to a two year high.
Also driving price action is commentary from Federal Reserve Chair Jerome Powell. The Federal Reserve is seeing economic activity pick up but remain concerned over the new uptick in coronavirus cases and mutations.
Daily U.S. Dollar Technical Analysis (USD/CAD)
On The above daily MT 4 price action chart, the U.S. dollar has been struggling to see gains above the 1.2625 to 1.2630 congestion area. The USD/CAD currency exchange rate is still trading within a four month old descending trend channel.
The technical indicators are neutral but trending lower supporting the sellers for now. Depending on the economic data, released today, as well as Covid-19 cases, the greenback could still benefit causing a correction higher. The first upside barrier, above the 1.2625 to 1.2630 congestion area, is 1.27 with 1.2740 then coming into focus.
There are two downside congestion zones on the downside to watch. The first one is at 1.26 to 1.2590 then 1.2575 to 1.2570 comes into play before the psychological support level at 1.25.
