Forex Market: USD/CAD daily forecast

During yesterday’s trading session USD/CAD traded within the range of 1.0647-1.0697 and closed at 1.0672.

At 12:10 GMT today USD/CAD was losing 0.11% for the day to trade at 1.0659. The pair touched a daily low at 1.0657 at 12:02 GMT.

Fundamental view

United States

Activity in United States’ manufacturing sector probably continued to expand during June, with the corresponding manufacturing PMI coming in at a reading of 55.5, according to expectations, from 55.4 in May. The Manufacturing Purchasing Managers’ Index (PMI) is a compound index, which represents manufacturing activity in 20 different industries. It is comprised by four equally-weighted components: seasonally adjusted employment, seasonally adjusted production inventories, seasonally adjusted new orders and supplier deliveries. The index is based on a survey of 300 purchasing managers.

Participants can either respond with “better”, “same”, or “worse” to the questions about the industry, in which they operate. The resulting PMI value is measured from 0 to 100. If the index shows a value of 100.0, this means that 100% of the respondents reported an improvement in conditions. If the index shows a value of 0, this means that 100% or the respondents reported a deterioration in conditions. If 100% of the respondents saw no change in conditions, the index will show a reading of 50.0. Therefore, readings above the key level of 50.0 are indicative of expanding activity in the sector of manufacturing, which usually supports the US dollar. The Institute for Supply Management (ISM) is to release the official reading at 14:00 GMT.

Technical view

According to Binary Tribune’s daily analysis, in case USD/CAD manages to breach the first resistance level at 1.0698, it will probably continue up to test 1.0722. In case the second key resistance is broken, the pair will probably attempt to advance to 1.0747.

If USD/CAD manages to breach the first key support at 1.0646, it will probably continue to slide and test 1.0622. With this second key support broken, the movement to the downside will probably continue to 1.0597.