For the bulls, important resistance points exist at 107.94 where the 100 day Moving average lies, also at 113.17 March 16th top that coincides right now with the downtrend line, and finally at 126.37 at the 161.8% Fibonacci extension target.
For the bears, important support levels exist at Aril 27th last top at 100.57, also at 79.70 50% Fibonacci retracement level and finally at 58.83 yearly low of May 12th.
• A busy day today on the reports front with Bank of Canada (BOC) rate statement and Overnight rate announcement being the frontrunner. From the US we have the weekly Crude Oil Inventories along with Final Wholesale Inventories and the 10y Bond auction results.
• U.S. stocks were mixed after the close on Tuesday, as gains in the Oil & Gas, Consumer Services and Industrials sectors led shares higher while losses in the Utilities, Consumer Goods and Healthcare sectors led shares lower.
At the close in NYSE, the Dow Jones Industrial Average fell 0.09%, while the S&P 500 index gained 0.02%, and the NASDAQ Composite index added 0.31%.
• U.S. small-business confidence edged lower last month, the first decline in four months, as a nationwide labor shortage and inflation worries weighed on business owners' economic outlook, according to a survey released on Tuesday.
The National Federation of Independent Business (NFIB) Optimism Index fell 0.2 point to a reading of 99.6 in May after three straight monthly increases. Five of the 10 index components improved, three declined and two were unchanged.
• Canada unexpectedly posted a trade surplus of C$594 million ($492.13 million) in April, as a shortage of chips slashed both imports and exports of motor vehicles and parts, Statistics Canada data indicated on Tuesday.
• The U.S. trade deficit narrowed in April to $68.9 billion as an improving global economy boosted sales of American exports.
The April deficit, the gap between what America buys from abroad and what it sells to other countries, was down 8.2% from a record March deficit of $75 billion.
• At 14:00 (GMT) CAD Bank of Canada (BOC) Rate statement is due. It's the primary tool the BOC uses to communicate with investors about monetary policy. It contains the outcome of their decision on interest rates and commentary about the economic conditions that influenced their decision.
• At 14:00 (GMT) CAD Overnight Borrowing Rate will be announced. This is the Interest rate at which major financial institutions borrow and lend overnight funds between themselves. Short term interest rates are the paramount factor in currency valuation.
• At 14:30 (GMT) US Crude Oil Inventories are due. It's the primary gauge of supply and demand imbalances in the market, which can lead to changes in production levels and price volatility.
• At 17:00 (GMT) US 10-y Bond Auction results will be announced. Auction results are reported in an 'X.XX|X.X' format - the first number is the highest interest rate of the bonds sold, and the second number is the bid-to-cover ratio (number of bids made per bid accepted).
US Indices yesterday:
• Dow Jones -0.09%
• S&P 500 +0.02%
• Nasdaq +0.31%
Sources: Investing.com, forexfactory.com,wfmz.com