Forex Market: USD/CAD daily trading forecast

Friday’s trade saw USD/CAD within the range of 1.1334-1.1177. The pair closed at 1.1266, gaining 0.71% on a daily basis.

At 9:56 GMT today USD/CAD was up 0.01% for the day to trade at 1.1267. The pair held in a daily range of 1.1264-1.1312.

Fundamental view

United States

Markit Economics will likely report that factory output in the US expanded at a solid pace in October, but slower from a month earlier. The respective Manufacturing PMI is expected to confirm a preliminary reading of 56.2, trailing September’s final reading of 57.5.

Meanwhile, the Institute for Supply Management, whose manufacturing report is more widely tracked, is anticipated to report that manufacturing activity growth in the US remained robust, but it slowed down for the second consecutive month. The ISM Manufacturing PMI is poised to come in at 56.2 from 56.6 in September, registering the 17th straight month of expansion.

The report is also expected to show that the manufacturing employment subindex inched up to 54.8 from 54.6 a month earlier, complementing recent upbeat labor data from the US.

Canada

Royal Bank of Canada is expected to report at 14:30 GMT today that Canadas manufacturing activity growth probably eased down in October, but remained firmly in the expansion zone. The respective RBC Manufacturing PMI is projected to come in at 53.1 compared to 53.5 in September, which, if confirmed, would be the 19th consecutive monthly expansion.

Technical view

According to Binary Tribune’s daily analysis, the central pivot point for the pair is at 1.1259. In case USD/CAD manages to breach the first resistance level at 1.1341, it may come to test 1.1416. In case the second key resistance is broken, the pair will probably attempt to advance to 1.1498.

If USD/CAD manages to breach the first key support at 1.1184, it will probably continue to slide and test 1.1102. With this second key support broken, the movement to the downside will probably continue to 1.1027.

The mid-Pivot levels for today are as follows: M1 – 1.1065, M2 – 1.1143, M3 – 1.1222, M4 – 1.1300, M5 – 1.1379, M6 – 1.1457.

In weekly terms, the central pivot point is at 1.1239. The three key resistance levels are as follows: R1 – 1.1361, R2 – 1.1455, R3 – 1.1577. The three key support levels are: S1 – 1.1145, S2 – 1.1023, S3 – 1.0929.