Forex Marketz Daily Forex News – Fully Markets Update
The U.S. dollar remains trading sideways around the fifty (50) percent Fibonacci retracement level. The USD/CAD currency exchange rate is quietly range trading near 1.2775 going into Friday’s trade session.
U.S. dollar traders are still digesting the U.S. Federal Reserve’s decision to double the pace of tapering monthly asset purchases. On Thursday, the Bank of England became the first major central bank to end the pandemic era ultra-low interest rate policy with a widely expected rate hike.
Also on Thursday, the European Central Bank kept monetary policy as is. They will quicken easing back pandemic era monthly asset purchases but will continue to support the euro area economy.
Today, the United Kingdom will publish monthly core and headline retail sales data. The European Union will publish their monthly core and headline consumer price index (CPI).
Germany is releasing monthly business expectations and current assessment surveys as well as their monthly produce price index (PPI).
Daily US Dollar Technical Analysis (USD/CAD)
Looking at the above one hour price chart, the U.S. dollar is taking a breather, as mentioned above at the 50 percent Fibonacci retracement level. The relative strength index (RSI) is improving but still in oversold territory.
The U.S. dollar has very limited room for recovery. The USD/CAD Forex pair has the one hundred (100) hour simple moving average and 38.2 percent Fibonacci retracement level converging around 1.2815.
The next layer of technical resistance lines up at 1.2845 before bring 1.29 into focus. The multi-month high price level lines up at 1.2937.
On the downside, a daily close below the 50 percent Fibonacci retracement level near 1.2770 brings the 61.8 percent Fibonacci retracement level into play.
This level lines up at 1.2730. The next downside level lines up at the 10 December swing low at 1.2680. Below 1.2680, the monthly low price point at 1.26 then comes into view.
