Forex Marketz Daily Forex News – Fully Markets Update
The almighty U.S. dollar (USD) is trading quietly against the Canadian currency as we head into Tuesday. The benchmark USD/CAD Forex market is trading around 1.2370 and below the one hundred (100) day simple moving average.
Also of note, the U.S. dollar is below the two hundred day simple moving average and a falling trend line in play for four months. This falling trend line is capping gains for the USD/CAD currency exchange rate.
The United States is publishing monthly existing home sales data and the Richmond Federal Reserve branch will publish monthly manufacturing data. Canada has nothing on their economic calendar for Tuesday.
Across The Pond, the economic calendar is quiet. Wednesday will be all about monthly Markit flash manufacturing purchasing managers’ indices (PMI). Thursday, the Bank of England will announce their monetary policy and interest rate decision.
Today, the UK will release monthly public sector net borrowing. CBI will publish monthly consumer industrial order expectations for the United Kingdom. The euro area is publishing monthly consumer confidence data.
Daily U.S. Dollar Technical Analysis (USD/CAD)
Looking at the above daily USD/CAD MT 4 price action chart, the U.S. dollar has reversed lower from the above mention falling trend line. However, the greenback is still trading above key support levels.
The 14 day MACD histogram is still looking positive. This could see a move higher and the USD/CAD challenging the 100 day simple moving average. This level is in play around 1.24. The next upside barrier lines up at 1.2485. This is the January closing price.
On the downside, a daily close below a congestion area in play at 1.2350 to 1.2325 opens the door for the Loonie currency exchange rate to challenge the next level of technical support at 1.2270.
The next layer of support lines up at 1.22. Below 1.22 opens the door to challenge the key psychological layer of support at 1.20.
