Forex Market: USD/CAD daily forecast

During yesterday’s trading session USD/CAD traded within the range of 1.0904-1.0938 and closed at 1.0933, adding 0.02% for the day.

At 11:07 GMT today USD/CAD was adding 0.02% for the day to trade at 1.0925. The pair touched a daily high at 1.0948 at 2:30 GMT, breaching the first key daily resistance level.

Fundamental view

United States

Non-Farm Productivity in the US probably rose 1.3% in the second quarter, preliminary data may show today, according to the median estimate by experts. In the previous quarter, non-farm productivity fell by 3.2%, induced by the bad weather in the country.

Labor productivity determines the interaction between real output and labor time, which is needed for their production. It shows changes in the number of goods and services produced per operating hour. Although the calculations associate the production with the working hours of all people engaged in a particular sector, the study does not include the specifics of the production process, capital/equipment or other production factors. The indicator reflects the associated impacts, including technological change, capital equipment, the level of production capacity, energy and materials, organization of production, management skills and characteristics and the efforts of the workforce. It is expressed as a percentage change compared to the previous quarter.

The US Bureau of Labor Statistics is scheduled to release an official report at 12:30 GMT. A higher-than-expected reading would be considered a bullish signal for the greenback.

Canada

The number of employed people in Canada probably increased by 24 000 last month compared to June, according to the median forecast by experts. In June, the number of employed Canadians unexpectedly declined by 9 400. 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.

In addition, the rate of unemployment in Canada probably remained unchanged at 7.1% in July. Lower than expected unemployment would have a bullish effect on the Canadian dollar. Statistics Canada is expected to release its official report at 12:30 GMT.

Technical view

According to Binary Tribune’s daily analysis, the central pivot point for the pair is at 1.0925. In case USD/CAD manages to breach the first resistance level at 1.0946, it will probably continue up to test 1.0959. In case the second key resistance is broken, the pair will probably attempt to advance to 1.0980.

If USD/CAD manages to breach the first key support at 1.0912, it will probably continue to slide and test 1.0891. With this second key support broken, the movement to the downside will probably continue to 1.0878.

In weekly terms, the central pivot point is at 1.0886. The three key resistance levels are as follows: R1 – 1.0975, R2 – 1.1033, R3 – 1.1122. The three key support levels are: S1 – 1.0828, S2 – 1.0739, S3 – 1.0681.