Forex Market: AUD/CAD daily trading forecast

Friday’s trade saw AUD/CAD within the range of 0.9822-0.9900. The pair closed at 0.9860, gaining 0.03% on a daily basis.

At 7:55 GMT today AUD/CAD was up 0.06% for the day to trade at 0.9868. The pair broke the first key daily resistance and touched a daily high at 0.9902 during early Asian trade.

Fundamentals

Aussie up on China’s government official’s statement

Australian dollar received support after on October 17th a government official from China said that the central bank is intending to provide national and regional lenders with about 200 billion yuan (32.7 billion USD) in order to help them satisfy year-end liquidity needs. Last month the Chinese central bank injected 500 billion yuan into the first five largest banks in the country. China is Australia’s largest trading partner.

Canadian wholesale sales report

At 12:30 GMT Statistics Canada is to report on wholesale sales in August. In July compared to June the value of sales made by wholesalers in the country dropped 0.3%. Lower wholesales are indicative of less active retail trade and, respectively, consumption. Therefore, a drop in wholesale sales might have a limited bearish effect on the loonie.

Pivot Points

According to Binary Tribune’s daily analysis, the central pivot point for the pair is at 0.9861. In case AUD/CAD manages to breach the first resistance level at 0.9899, it will probably continue up to test 0.9939. In case the second key resistance is broken, the pair will probably attempt to advance to 0.9977.

If AUD/CAD manages to breach the first key support at 0.9821, it will probably continue to slide and test 0.9783. With this second key support broken, the movement to the downside will probably continue to 0.9743.

The mid-Pivot levels for today are as follows: M1 – 0.9763, M2 – 0.9802, M3 – 0.9841, M4 – 0.9880, M5 – 0.9919, M6 – 0.9958.

In weekly terms, the central pivot point is at 0.9833. The three key resistance levels are as follows: R1 – 0.9988, R2 – 1.0115, R3 – 1.0270. The three key support levels are: S1 – 0.9706, S2 – 0.9551, S3 – 0.9424.