Forex Market: USD/CAD daily forecast

During yesterday’s trading session USD/CAD traded within the range of 1.0872-1.0917 and closed at 1.0911.

At 11:13 GMT today USD/CAD was adding 0.04% for the day to trade at 1.0910. The pair touched a daily high at 1.0914 at 00:30 GMT.

Fundamental view

At 18:00 GMT the Federal Open Market Committee (FOMC) will release the minutes from its meeting on policy held on April 29-30th. The minutes offer detailed insights on FOMC’s monetary policy stance. The release is closely examined by traders, as it may provide clues over interest rate decisions in the future. High volatility is usually present after the publication.

At 15:00 GMT Fed Chair Janet Yellen is expected to make a statement. She took the place of Ben Bernanke as chairman of the U.S. Federal Reserve in February 2014 with a 4-year term. In her public events, Yellen has so far maintained moderate tone and the stance that for the recovery of the U.S. Economy, monetary policy of low interest rates and financial incentives is needed. Statements by FOMC members attract investors’ attention, as they may offer clues over the possible direction of monetary policy in the future. Yellen’s remarks may indicate a positive or negative trend in a short term.

Technical view

According to Binary Tribune’s daily analysis, in case USD/CAD manages to breach the first resistance level at 1.0928, it will probably continue up to test 1.0945. In case the second key resistance is broken, the pair will probably attempt to advance to 1.0973.

If USD/CAD manages to breach the first key support at 1.0883, it will probably continue to slide and test 1.0855. With this second key support broken, the movement to the downside will probably continue to 1.0838.