Forex Marketz Daily Forex News – Fully Markets Update
Looking at the above hourly USD/CAD MT 4 price chart, the US dollar (USD) is trying to find direction around 1.28 during Asian trade session on Tuesday. The USD/CAD Forex market recently recovered off its lowest price point since 22 May 2018 as price action broke above trend channel in play for the last three days.
There is not a lot on the economic calendar today. The United States has two low impact events and the Canadian economic calendar is quiet. The Eurozone will release their monthly ZEW economic sentiment survey. Germany is also publishing their monthly ZEW economic sentiment survey.
France is publishing their monthly trade balance and the euro area will release their final look at their quarterly gross domestic product (GDP). The United Kingdom will release their monthly BRC retail sales indicator.
The US dollar has been on the back foot and broadly weak throughout the Forex universe. Traders are watching the U.S. Congress closely for another round of coronavirus fiscal stimulus and new Covid-19 pandemic cases have skyrocketed across the states.
California has reissued strict stay at home orders as they reenter another lockdown to try and contain the pandemic. This will eventually support safe haven currencies like the US dollar.
Daily US Dollar Technical Analysis (USD/CAD)
Looking at price action on the above MT 4 price chart, there is immediate technical resistance in play at 1.2810. The relative strength index (RSI) is normal as traders decide which direction to go in.
A daily close above 1.2810 will open the door to challenge the falling trend line in play since 30 November and one hundred (100) hour simple moving average in plat at 1.2870 to 1.2875.
On the downside, a close below 1.2770 opens the door for the May 2018 low price point in play at 1.2730. a sustained close below this level will open the door for the round technical support level in play at 1.27. Below 1.27 are former multiple tops, now support at 1.2625 and 1.2620.
