Forex Marketz Daily Forex News – Fully Markets Update
Taking a look at the USD/CAD Forex market today, the US Dollar has risen to a seven week high. Looking at the chart you can see a series of rises then falls. Would seem the USD/CAD is trying to break that pattern.
The technical analysis: note that near term resistance is at 1.2560. A daily close above this level will challenge the technical resistance at 1.2650. Alternatively, should the USD/CAD break lower, there is technical support at 1.2502. A break below this support level challenges the technical support at 1.2398. This is a horizontal pivot level.
Trade strategy today is not very complicated. Price action is wedged too close between a technical support and technical resistance level to warrant a long USD trade. Timing is not quite right from a risk to reward perspective. Absent and key bearish signals, to warrant a short USD, long CAD trade, I will opt to stand aside for now. From a risk event perspective, the US will release the NFP on Friday. This will cause some Dollar volatility.