Forex Market: USD/CAD daily forecast

During yesterday’s trading session USD/CAD traded within the range of 1.0641-1.0684 and closed at 1.0650.

At 11:05 GMT today USD/CAD was adding 0.1% for the day to trade at 1.0663. The pair touched a daily high at 1.0671 at 9:55 GMT.

Fundamental view

United States

The initial jobless claims in the US probably rose to 316 000 in the week ended July 5th, from 315 000 a week ago, according to the median estimate by experts.

The indicator measures the number of applications for unemployment benefits that are recorded each week in a report prepared by the Bureau of Labor Statistics in the United States. Initial application or (Initial Claim) means a completed document from an unemployed person before the local government, which is considered a claim for compensation or the possibility of compensation. The completion of the initial claim marks the beginning of a period in which the applicant receives unemployment benefits. The survey covers the number of applications registered in the previous week and is an important indicator concerning the health of the US labor market.

The statistical arm of the US Department of Labor will release an official report at 12:30 GMT today. If jobless claims rose less than expected, this will provide support for the US dollar.

Canada

Selling prices of new homes in Canada probably rose 0.2% in May compared to a month ago, when prices increased 0.2%. The New Housing Price Index is a key indicator, reflecting the health of nation’s housing market. In case prices surged more than anticipated, this would have a bullish effect on the loonie.

Statistics Canada will release the official data 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 1.0676, it will probably continue up to test 1.0701. In case the second key resistance is broken, the pair will probably attempt to advance to 1.0719.

If USD/CAD manages to breach the first key support at 1.0633, it will probably continue to slide and test 1.0615. With this second key support broken, the movement to the downside will probably continue to 1.0590.