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USD Positive As Forex Trading Week Gets Underway

Posted Monday, March 29, 2021 by
Shain Vernier • 1 min read

The forex trading week is officially underway and the Greenback is showing modest strength. With only a few hours to go in the Monday session, the USD/CAD (+0.17%), EUR/USD (-0.13%), and USD/CHF (-0.08%) are all hovering near flat. For the time being, forex traders are taking it easy as March rolls toward its close.

Over the weekend, the situation in the Suez Canal was remedied. The massive cargo freighter Ever Given has been dislodged from the canal and regular shipping traffic is set to resume. This is a major development as global supply chains were beginning to feel the strain of losing access to the valuable thoroughfare.

Today’s economic calendar is sparsely populated, featuring only a few peripheral events. However, the Dallas Fed Manufacturing Index (March) came in exceedingly positive. The figure posted a value of 28.9, well above the previous release of 17.2. Although this report isn’t a major market mover, it does suggest that the U.S. economic recovery is progressing. 

On the forex front, the USD/CAD is one of this morning’s more active pairs. Let’s check out the technicals and see if we can spot a trade or two.

Forex Weekly Open: USD/CAD Consolidates Beneath 1.2600

Since posting the Spike Low (1.2365) on 18 March, the USD/CAD has rallied more than 200 pips. Now, rates are on the cusp of the 1.2600 handle.

forex
USD/CAD, Daily Chart

Here are two levels to watch for the next few sessions:

  • Support(1): Bollinger MP, 1.2576
  • Support(2): Daily SMA, 1.2526

Bottom Line: If we see the USD/CAD pull back from current levels, a buying opportunity may set up. Until Wednesday’s forex close, I’ll have buy orders in the queue from 1.2529. With an initial stop loss at 1.2509, this trade produces 20 pips on a standard 1:1 risk vs reward ratio.

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