Forex Marketz Daily Forex News – Fully Markets Update
Looking at the US dollar on the above USD/CAD daily MT 4 price action chart, the greenback is on the defensive in this Forex market.
The almighty US dollar has fallen to a new low price point not seen since February 2018. Right now, during the early Asian trade session, the USD/CAD currency exchange rate is trading around 1.25 waiting on the next catalyst.
Today’s economic calendar is not very busy. Forex traders will pay close attention to labor data from the U.S. Department of Labor. The world’s largest economy will release weekly first time unemployment claims as well as weekly continuing claims jobs data.
The United States is also publishing quarterly gross domestic product (GDP) data as well as monthly pending home sales and core durable goods orders.
Canada has nothing on the economic calendar and neither does the United Kingdom. The European Union will publish monthly M3 monetary supply numbers.
Forex traders are monitoring ongoing debate in the American Congress over President Joe Biden’s $1.9 trillion coronavirus pandemic fiscal stimulus relief package. Members of his own party want a minimum federal wage of $15 per hour and the Republicans think this aid package is too big.
Daily US Dollar Currency Technical Analysis (USD/CAD)
Looking at the above price action chart, the 14 day relative strength index (RSI) is signaling oversold as the US dollar challenges the downward sloping trend line in play since 15 December 2020.
This is a tough support level at the trend line, along with the oversold RSI, could see the USD/CAD Forex market correct higher to the ten (10) day simple moving average at 1.2625.
However, 1.26 is a strong upside barrier before the 10 day simple moving average. Above the 10 day SMA opens the door for the technical layer of resistance in play at the three week old descending trend line. This barrier lines up at 1.2680 for today.
On the downside, the first layer of technical support lines up at 1.25 with the next downside barrier lining up at the 2016 low price point at 1.2460.
