Forex Market: USD/CAD daily forecast

During yesterday’s trading session USD/CAD traded within the range of 1.0917-1.0960 and closed at 1.0922.

At 11:07 GMT today USD/CAD was gaining 0.08% for the day to trade at 1.0932. The pair touched a daily high at 1.0932 at 11:06 GMT.

Fundamental view

United States

Employers in all sectors of economy in the United States, excluding the farming industry, probably added 219 000 new jobs last month, according to the median forecast by experts, after a job gain of 288 000 in April. April’s gain was the biggest since May 2010. Creation of jobs is considered of utmost importance for consumer spending, while the latter is a major driving force behind economic growth. In case of a larger than expected gain in jobs, the US currency would receive a boost.

In addition, the rate of unemployment in the United States probably increased to 6.4% last month from 6.3% in April, that was the weakest since September 2008. In case the rate meets expectations or even drops further, this would have a bullish effect on the greenback.

Both reports are due to be released at 12:30 GMT.

Canada

The number of the employed people in Canada probably increased by 21 500 last month compared to April, according to the median forecast by experts. In April compared to March, the number of the employed unexpectedly dropped by 28 900. Creation of new job positions is considered of utmost importance for consumer spending. In case employment in the country increases more than expected, the loonie would be supported.

The rate of unemployment in Canada probably remained unchanged at 6.9% in May. Lower than expected unemployment would have a bullish effect on Canadian dollar. Statistics Canada is expected to release its official report 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 1.0949, it will probably continue up to test 1.0976. In case the second key resistance is broken, the pair will probably attempt to advance to 1.0992.

If USD/CAD manages to breach the first key support at 1.0906, it will probably continue to slide and test 1.0890. With this second key support broken, the movement to the downside will probably continue to 1.0863.