Forex Market: USD/CAD daily forecast

During yesterday’s trading session USD/CAD traded within the range of 1.1001-1.1042 and closed at 1.1028.

At 11:13 GMT today USD/CAD was gaining 0.08% for the day to trade at 1.1036. The pair touched a daily high at 1.1047 at 07:50 GMT, managing to breach the first resistance level of 1.1046.

Fundamental view

United States

At 14:00 GMT United States’ Census Bureau is to announce the results from the Survey of Construction, regarding sales of new, privately-owned residential buildings currently authorized by a building permit or started in areas not requiring a building permit in February. New home sales in the country probably increased to 0.45 million last month from 0.44 million in February.

A higher-than-expected reading would certainly heighten greenback’s appeal.

Canada

Retail sales in Canada probably rose by 0.5% in February, after a 1.3% increase in the previous month, according to the median analyst’ estimate.

Retail sales are a key monthly indicator of consumer purchases in Canada. In addition, retail sales are an important component of GDP, which measures the overall production of the Canadian economy. The index does not include any form of direct sales, such as sales door-to-door, vending coffee, sale of newspapers or magazines directly from the printing office or publisher sales made ​​through subscription or club cards. Retail sales made ​​over the Internet are included in the study only when held to the same legal scheme. This is the percentage change from the previous month.

Retail sales excluding autos in Canada probably jumped by 0.5% in February, following a 1% gain in the previous month, according to the median forecast by experts.

The index presents the changes in the total value of retail sales without the cars, whose sales account for about 20% of the total. They are excluded due to their high volatility, which can significantly affect the overall trend. Data without car sales is considered to be more representative and determines the direction of development of the indicator more precisely. This is the percentage change from the previous month.

Statistics Canada will release official data at 12:30 GMT. Higher-than-expected gains will certainly provide support to loonie’s demand.

Technical view

According to Binary Tribune’s daily analysis, in case USD/CAD manages to breach the first resistance level at 1.1046, it will probably continue up to test 1.1065. In case the second key resistance is broken, the pair will probably attempt to advance to 1.1087.

If USD/CAD manages to breach the first key support at 1.1005, it will probably continue to slide and test 1.0983. With this second key support broken, the movement to the downside will probably continue to 1.0964.