Forex Marketz Daily Forex News – Fully Markets Update
The almighty dollar is in the driver’s seat against the Canadian currency. The benchmark USD/CAD currency exchange rate is trading around 1.2435 to 1.2445 ahead of monthly labor data out of the United States.
All eyes will be on today’s key U.S. Labor Department’s June labor market figures. The world’s largest economy will publish their monthly non-farm payroll (NFP) report, monthly unemployment rate, June’s labor participation rate and monthly average hourly wage data.
Canada will publish their monthly manufacturing purchasing managers’ index (PMI). The United Kingdom is not releasing economic data on Friday. The European Union will publish monthly producer price index (PPI) data and Spain is releasing their monthly unemployment change. Japan has no economic data scheduled to be released overnight into the weekend.
Daily U.S. Dollar Technical Analysis (USD/CAD)
Looking at the above daily MT 4 price action chart, the USD/CAD Forex market has been moving higher from a horizontal support level at the March low price point. The 14 day MACD histogram is sloping lower which could indicate bullish momentum could be running out. This would be bad for the U.S. dollar bulls.
The U.S. dollar is trading above the fifty (50) day simple moving average. If the MACD shifts back to bullish and the USD/CAD currency exchange rate stays above the 50 day simple moving average, then a test of 1.2450 cannot be ruled out.
The next upside barrier is at the six month old falling trend line at 1.2570. The next layer of technical resistance comes into play at the April high price point. This level is at 1.2655.
On the downside, a daily close below 1.2360 opens the door to challenge the 50 day simple moving average a 1.2285. A sustained close below the 50 day SMA opens the door for the technical support level at 1.2250 with 1.2150 then coming into focus. The year low price point and psychological level at 1.20 then pops onto the radar.
