Forex Market: USD/CAD daily forecast

During yesterday’s trading session USD/CAD traded within the range of 1.0853-1.0873 and closed at 1.0857.

At 11:27 GMT today USD/CAD was losing 0.15% for the day to trade at 1.0843. The pair touched a daily low at 1.0836 at 8:45 GMT, breaching the two key supports.

Fundamental view

Durable goods orders in the US probably dropped 0.7% in April, following a 2.9% gain in the previous month that was larger than initially estimated.

Durable goods are new or second hand goods that usually last for a period of over 3 years. Wholesalers sell durable goods such as motor vehicles, furniture, construction materials, machinery and equipment (including household appliances), metals and minerals (except petroleum), sporting goods, toys and goods for leisure activities, renewable materials and spare parts.

Durable Goods Orders excluding Defense probably slumped 0.9% in April, after a 1.8% increase in the previous month, according to the median analysts’ estimate.

The US Census Bureau is scheduled to publish an official report at 12:30 GMT. In case, durable goods orders rose more than expected, the greenback’s demand will certainly be supported.

In addition, confidence among US consumers probably improved in May. The corresponding index probably rose to a reading of 83.0 from 82.3 in April, which matched the March’s reading and was the strongest since January 2008.

The Conference Board research group is to announce the results from its survey, encompassing over 5 000 households in the country, at 14:00 GMT. If the gauge of confidence shows a better than expected performance, this would certainly heighten the appeal of the US dollar.

Technical view

According to Binary Tribune’s daily analysis, in case USD/CAD manages to breach the first resistance level at 1.0869, it will probably continue up to test 1.0881. In case the second key resistance is broken, the pair will probably attempt to advance to 1.0889.

If USD/CAD manages to breach the first key support at 1.0849, it will probably continue to slide and test 1.0841. With this second key support broken, the movement to the downside will probably continue to 1.0829.