The price now is near that high trading around 109.70 above the 61.8 Fibonacci retracement level of the last downward move. Friday’s candle is an Inverted Hammer which is considered a bearish trend candle if confirmed today by a close below the previous day’s low.
For the bears, important support points at 109.64 - 61.8 Fibonacci retracement level, also at 108.16 from a July 1st 2020 inside support top and finally at 107.47 which is the bottom of the last move of April 23rd.
For the bulls, important resistance points at 110.96 yearly high of March 30th, also at 11.72 top of March 25th 2020 and finally at 112.22 February 20th 2020 top.
• With the US Markets closed today there will be no news to focus on and volumes will stay on the lighter side. The main focus will fall on CAD and announcements on Current Account, IPPI and RMPI results.
• All major indexes made gains on Wall Street in the early afternoon, led by technology, healthcare, real estate, and financial stocks.
The Dow Jones Industrial Average rose 0.19%, to 34,529.45, the S&P 500 gained 0.08%, at 4,204.11 and the Nasdaq Composite added 0.09%, at 13,748.74.
• U.S. consumer sentiment deteriorated in May as consumers grew more concerned about a pickup in inflation, a survey released on Friday showed.
The University of Michigan's Consumer Sentiment Index fell to a final reading of 82.9 from April's final level of 88.3, though it was little changed from May's preliminary reading of 82.8.
• Gold vaulted back to above $1,900 an ounce on Friday, effectively crossing the finishing line for May with a near 8% gain that handed longs in the yellow metal their best return in 10 months.
All things being equal, a higher inflationary environment is good for gold, which is seen as the best store of value in times of both financial and political trouble.
• U.S. crude oil output jumped 14.3% to 11.2 million barrels per day (bpd) in March from 9.8 million bpd in February, the U.S. Energy Information Administration (EIA) said in its monthly 914 production report on Friday.
• At 12:30 (GMT) CAD Current Account balances will be announced. This indicator measures the difference in value between imported and exported goods, services, investment income, and current transfers during the previous quarter.
• At 12:30 (GMT) CAD Industrial Product Price Index (IPPI) is due. This report registers the change in the price of goods sold by manufacturers month to month.
• At 12:30 (GMT) CAD Raw Materials Price Index (RMPI) is also due. This report measures the change in the price of raw materials purchased by manufacturers month to month.
US Indices Friday:
• Dow Jones +0.19%
• S&P 500 +0.08%
• Nasdaq +0.09%
Sources: Investing.com, forexfactory.com.