Article by ForexTime
The US dollar has continued to find see strong support from the domestic markets as US housing prices lifted quite strongly to 5.5M (5.3M exp) showing continued confidence in the housing market from consumers. The Philly Fed Manufacturing Index also showed a strong result coming in at 9.7 (5.2 exp), it was however a dip on the previous months result, nonetheless it was still much better than expected and continues to add pressure to the USD bears who are betting against a US rate rise come December. For US data it really is the end of the week with mo more economic data due, but for the markets there is certainly one more day and one more trade that is looking very interesting.
The USDCAD for me is quite interesting at present as it continues to play of major levels and ignore trending all together at the best of times. However CPI data is due out for the Canadian economy on Friday evening, and many are expecting to see a slight boost to 0.2% (0.0% previous) and also retail sales to also lift as consumer confidence from the US crosses the border into Canada. The main catalyst for moves has also been oil which has been riding higher, however with the USD also riding higher it has caused a stagnation for the USDCAD is looks to range across the charts. While not providing a clear trend, traders are looking to take full of advantage of the levels.
USDCAD traders have so far struggled to cross the threshold at 1.3275 as it continues to hold out against any further movements higher. For many this level so far has been a line in the sand but the market is creeping back up towards it, but it will be a big what if, if it can breakthrough. Any touch here may see rejections and they are likely to find first level support at 1.3149, but also the 50 day moving average which has so far been acting as dynamic support for market movements lower. Beyond this the psychological level at 1.3001 also is a major sticking point, as the previous weeks movement saw a rush down towards it, but failed to crack through and then saw a hasty retreat back up the chart. In the long run it’s likely the USD will take charge, but in the short term these key levels keep offering up plenty of pips for traders look to play of some very solid levels.
Lastly the USDJPY also has taken some of the spotlight recently after charging back up the charts, and yesterdays touch on support at 103.378 continues to show that markets are still somewhat bullish about the prospects of the USDJPY moving higher. The next major level above this is resistance at 104.657 and is likely to hold up large movements in the short term unless we see some major US economic news, as the USDJPY loves to range before breaking out sharply as we’ve seen time and time again in the past.
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Article by ForexTime
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