Forex Market: CAD/MXN daily trading forecast

Yesterday’s trade saw CAD/MXN within the range of 11.9786-12.0592. The pair closed at 12.0420, gaining 0.38% on a daily basis.

At 8:53 GMT today CAD/MXN was down 0.06% for the day to trade at 12.0312. The pair touched a daily low at 12.0226 during early Asian trade.

Fundamental view

Canada

Foreign portfolio investment in Canadian securities probably expanded to 2.47 billion CAD in July, according to the median forecast by experts, following a drop by 1.07 billion CAD in June. This indicator reflects the flow of incoming investments in the local stock, bond and money markets. An increasing flow of foreign investments is usually related with a positive economic outlook for the country being invested in. This usually increases demand for its currency, therefore, in case portfolio investment in Canadian securities expanded more than anticipated, the loonie would receive support. The official data by Statistics Canada is due out at 12:30 GMT.

Technical view

According to Binary Tribune’s daily analysis, the central pivot point for the pair is at 12.0266. In case CAD/MXN manages to breach the first resistance level at 12.0746, it will probably continue up to test 12.1072. In case the second key resistance is broken, the pair will probably attempt to advance to 12.1552.

If CAD/MXN manages to breach the first key support at 11.9940, it will probably continue to slide and test 11.9460. With this second key support broken, the movement to the downside will probably continue to 11.9134.

The mid-Pivot levels for today are as follows: M1 – 11.9297, M2 – 11.9700, M3 – 12.0103, M4 – 12.0506, M5 – 12.0909, M6 – 12.1312.

In weekly terms, the central pivot point is at 11.9767. The three key resistance levels are as follows: R1 – 12.0398, R2 – 12.1324, R3 – 12.1955. The three key support levels are: S1 – 11.8841, S2 – 11.8210, S3 – 11.7284.