Forex Marketz Daily Forex News – Fully Markets Update
USD/CAD (1.2372)
- Support Levels: 1.2280, 1.2220, 1.2128
- Resistance Levels: 1.2385, 1.2447, 1.2525
- Trade Strategy: Stand Aside
The US Dollar continues to rebuild its losses and move higher against the Canadian Dollar. The Loonie has now fallen for four days in a row as the Dollar has moved higher. Please refer to the below daily MT 4 chart.
Technical Analysis
Today’s technical analysis notes a cluster area that runs from 1.2371 to 1.2385. A daily close above this technical resistance area will challenge the next technical resistance that lines up at 1.2447. The alternative analysis, should the US Dollar run out of steam and reverse, thus pushing the USD/CAD Forex market lower, notes support lining up at 1.2280. A break below this level challenges the technical support lining up at 1.2220.
Trade Strategy
As with the USD/JPY analysis today, there are couple of things to note. First off, the Fed’s dovish Fed Statement last week indicated that there could be no normalization of monetary policy in September. The Fed will raise rates this year, question is when. Chances are still pretty good of two 25 basis point hikes before January. Also, there is Greece. The Greek drama just will not end. Greece “no deal” to the creditors yesterday. This will cause volatility in the financial markets today. From a technical analysis, the USD/CAD is trading too close to a technical resistance level to take up a long USD trade. Timing is off from a risk to reward perspective for that move. There are also no clear cut bearish reversal signs. This means placing a long CAD (short USD) trade is premature at this time. With all the event risk volatility, coupled with what I am seeing on my charts, I will opt to stand aside for now. I will monitor my charts, as well as the news, waiting for a better trade opportunity to come along.
