The US dollar index keeps rounding above the 103.60 historical support level. The buyers have already defended this level for three weeks, highlighting their interest in the greenback. Thus, buying USD looks less risky right now.
Market updates on November 6
Key events ahead
Canadian Ivey PMI – 17:00 MT time (15:00 GMT)
The euro is on the rise since yesterday against the CAD. On the H4 chart of EUR/CAD, the week has started with the CAD appreciating and the price falling to the support at 1.4560, marked in the middle of October already. Further support levels for the bears may be placed at 1.4533. 1.4509 and 1.4466. However, if the price follows the same periodical wave of rising as it does with RSI lately, we may expect further appreciation of the euro against the Canadian dollar up to the resistance levels of 1.4647, 1.4684 and 1.4705.
A similar picture appears with the US dollar. On the H4 chart of USD/CAD, the price showed a steep drop to the support level of 1.3120 yesterday, pinching it through, then bounced back and has kept moving up since then. In case the market reverts to favor the bears, we may keep the support levels at 1.3152, 1.3131, 1.3120. The bottom sector may be market at 1.3078 and a strong support level of 1.3050. Otherwise, as the price shows upward movement above the Alligator indicator, further appreciation of the USD against the CAD may be expected, with resistance levels of 1.3180 and 1.3208 in view.
On the other side of the market, the NZD shows interesting opportunities for the bears. On the H4 chart of NZD/JPY, the strong psychological resistance range of 69.90 – 70.00 has been capping the price movement since the third week of October. The price dropped again from those heights yesterday. Now there is a strong potential for the continued bearish move as the price is testing the support level of 69.35 along with the trend support line. Once it is penetrated, further supports of 69.26, 69.16 and 68.97 may be placed to check the downward trend.
On the H4 timeframe, the US dollar index has formed a bullish falling wedge. At the beginning of the trading session, the price is testing the upper border of this wedge. Thus, in case of a higher-than-expected Core PCE Price Index m/m, the US dollar will skyrocket against other currencies.
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