Forex Market: AUD/CAD daily forecast

During yesterday’s trading session AUD/CAD traded within the range of 1.0169-1.0213 and closed at 1.0198, adding 0.21% on a daily basis.

At 11:33 GMT today AUD/CAD was up 0.17% for the day to trade at 1.0216. The pair broke the first key daily and the first key weekly resistance levels and touched a daily high at 1.0225 at 7:55 GMT.

Fundamental view

The deficit on Canadian trade balance probably contracted to 0.100 billion CAD during June from 0.152 billion CAD in the prior month. The trade balance, as an indicator, measures the difference in value between nation’s exported and imported goods and services during the reported period. It reflects the net export of goods and services, or one of the components to form country’s Gross Domestic Product. Exports probably increased to 45.00 billion CAD in June from 42.17 billion CAD in May, while imports probably shrank to 44.00 billion CAD from 44.32 billion CAD in the previous month. Generally, exports reflect economic growth, while imports indicate domestic demand. In case the trade balance deficit shrank more than expected, this would provide support to Canadian dollar. Statistics Canada will release the official figure at 12:30 GMT.

Technical view

According to Binary Tribune’s daily analysis, the central pivot point for the pair is at 1.0193. In case AUD/CAD manages to breach the first resistance level at 1.0218, it will probably continue up to test 1.0237. In case the second key resistance is broken, the pair will probably attempt to advance to 1.0262.

If AUD/CAD manages to breach the first key support at 1.0174, it will probably continue to slide and test 1.0149. With this second key support broken, the movement to the downside will probably continue to 1.0130.

In weekly terms, the central pivot point is at 1.0159. The three key resistance levels are as follows: R1 – 1.0201, R2 – 1.0234, R3 – 1.0276. The three key support levels are: S1 – 1.0126, S2 – 1.0084, S3 – 1.0051.