Uncle Sam and Canada are printing housing-related reports today!
Will the releases inspire volatility for USD/CAD in the next few hours?
The 15-minute chart presents a few short-term opportunities.
Before moving on, ICYMI, I’ve listed the https://www.babypips.com/news/forex-weekly-outlook-2023-09-04” target=”_blank” rel=”noopener”>potential economic catalysts that you need to watch out for this week. Check them out before you place your first trades today!
And now for the headlines that rocked the markets in the last trading sessions:
Fresh Market Headlines & Economic Data:
Japan’s markets out on bank holiday
Shares of China’s indebted property developer Evergrande dropped by 25% as news came out that Shenzen police had detained some staff from the company’s wealth management unit.
BusinessNZ: New Zealand’s service sector weakened from 48.0 to 47.1 in August; “Negative comments received were strongly dominated by uncertainty regarding the upcoming General Election, as well as continued adverse economic conditions”
Rightmove: “More than a third of U.K. properties have had at least one price reduction, the highest figure recorded since January 2011… Average size of the price reduction is also the highest since January 2011”
Price Action News
There were no top-tier economic releases during the Asian session so traders had time to take off their bets ahead of this week’s potential catalysts.
NZD, in particular, found support early in the session before more traders went online and contributed to a choppy trading session.
The comdoll slipped from its intraday highs at the start of the European session and is now hanging out closer to its weekly open levels.
Canada’s housing starts at 12:30 pm GMT
U.S. NAHB housing market index at 2:00 pm GMT
RBA’s meeting minutes at 1:30 am GMT (Sept 19)
Use our new Currency Heat Map to quickly see a visual overview of the forex market’s price action! 🔥 🗺️
Both Canada and the U.S. are printing housing-related numbers today, which is why USD/CAD may see a bit more volatility compared to other major currency pairs.
USD/CAD is trading near the 1.3490 level that had held as support at least thrice since last week.
What makes the setup interesting today is that 1.3490 is also near the S1 (1.3490) of today’s Pivot Point levels.
Look out for a potential bounce as more traders potentially take profits and buy safe havens ahead of this week’s potential catalysts.
Another retest of the range support zone opens USD/CAD to a bounce back to the 1.3520 Pivot Point area near the 15-minute chart’s 100 and 200 SMAs.
If you’d rather buy CAD against the U.S. dollar or trade the current upswing in crude oil prices, then you can also wait for a retest of the PP line near the SMAs and then target USD/CAD’s September lows.
Watch this one closely, yo!
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