Forex Market: CAD/NOK daily forecast

During Fridays trading session CAD/NOK traded within the range of 5.6673-5.7295 and closed at 5.6901, losing 0.45% for the day and 0.98% on a weekly basis.

At 6:39 GMT today CAD/NOK was losing 0.01% for the day to trade at 5.6894. The pair touched a daily low at 5.6774 at 5:25 GMT.

Fundamental view

Canada

Annualized number of housing starts in Canada probably declined to 195 300 in July from 198 200 in the previous month. Housing starts are considered as a key indicator, reflecting nation’s housing sector’ resilience. In case the number of housing starts rose more than expected, this would provide support to the loonie. Canada’s Mortgage and Housing Corporation will release the official data at 12:15 GMT.

Norway

Norway’s annualized index of consumer prices (CPI) probably rose 1.5% in July, following a 1.9% gain in the previous month. It reflects the change in the general level of prices of over 650 goods and services, which the population acquires, uses or pays for consumption. In case the CPI accelerated more than expected, this would bolster demand for the krone.

Nation’s annualized core CPI (CPI-ATE) probably jumped 1.9% in July, after rising 2.4% during the prior month. This indicator is comprised by two main components – CPI-AE, which excludes energy costs and prices of raw materials, and CPI-AT, which is based on real current prices adjusted for taxes. CPI-ATE is the indicator, used by Norges Bank in order to set its interest rate policy. A higher than expected core CPI would support the national currency, as this boosts the case for a rate hike.

Statistics Norway is to release the official report on consumer inflation at 8:00 GMT.

Technical view

According to Binary Tribune’s daily analysis, the central pivot point for the pair is at 5.6956. In case CAD/NOK manages to breach the first resistance level at 5.7240, it will probably continue up to test 5.7578. In case the second key resistance is broken, the pair will probably attempt to advance to 5.7862.

If CAD/NOK manages to breach the first key support at 5.6618, it will probably continue to slide and test 5.6334. With this second key support broken, the movement to the downside will probably continue to 5.5996.

In weekly terms, the central pivot point is at 5.7058. The three key resistance levels are as follows: R1 – 5.7443, R2 – 5.7985, R3 – 5.8370. The three key support levels are: S1 – 5.6516, S2 – 5.6131, S3 – 5.5589.