Forex Market: USD/CAD daily forecast

During yesterday’s trading session USD/CAD traded within the range of 1.0943-1.1026 and closed at 1.0954.

At 11:42 GMT today USD/CAD was gaining 0.15% for the day to trade at 1.0961. The pair touched a daily high at 1.0966 at 11:00 GMT.

Fundamental view

Canada

Canada’s Gross Domestic Product probably expanded 0.2% during February compared to January, according to the median estimate by experts, as in the previous month, the GDP figure rose by 0.5%. Annualized GDP, on the other hand, advanced 2.5% in January and is expected to have remained intact in February. The official figures are to be announced at 12:30 GMT.

A faster than expected pace of economic growth would certainly heighten the appeal of the Canadian currency.

United States

Employment in United States’ private sector probably increased by 208 000 during April, following another job gain of 191 000 in the previous month. The report by Automatic Data Processing Inc. (ADP) is based on data, encompassing about 400 000 out of 500 000 business entities with over 24 million employees engaged in 19 major sectors of the economy in accordance with North American Industry Classification System (NAICS). It usually comes out two days before the official employment report by the Bureau of Labor Statistics (BLS), thus, providing clues over the tendency in nation’s non-farming sector. In case employment increases more than anticipated, this would have a bullish effect on the greenback. The report is expected at 12:15 GMT.

In addition, United States’ flash (preliminary) annualized Gross Domestic Product probably expanded 1.1% during the first quarter of 2014, according to the median estimate by experts. The final GDP for Q4, announced on March 27th, was 2.6%.

This is the widest indicator for nation’s economic activity. A larger than expected increase in the GDP figure would boost demand for the US dollar. The official result is to be released at 12:30 GMT.

Technical view

According to Binary Tribune’s daily analysis, in case USD/CAD manages to breach the first resistance level at 1.1006, it will probably continue up to test 1.1057. In case the second key resistance is broken, the pair will probably attempt to advance to 1.1089.

If USD/CAD manages to breach the first key support at 1.0923, it will probably continue to slide and test 1.0891. With this second key support broken, the movement to the downside will probably continue to 1.0840.