Forex Market: USD/CAD daily trading outlook

Friday’s trade saw USD/CAD within the range of 1.1448-1.1308. The pair closed at 1.1327, losing 0.85% on a daily basis.

At 9:26 GMT today USD/CAD was down 0.02% for the day to trade at 1.1326. The cross held in a daily range of 1.1312-1.1336.

Fundamentals

United States

The US Labor Department reported on Friday that US employers added fewer jobs than expected last month, with the corresponding U.S. non-farm payrolls coming in at 214 000, trailing the projection of 231 000. Septembers reading received an upward revision to 256 000 from initially estimated at 248 000.

The non-farm payrolls report presents the total number of US employees in any business, excluding the following four groups: farm employees, general government employees, employees of non-profit organizations, private household employees. Despite its volatility and the possibility of large revisions, the non-farm payrolls indicator presents the most timely and comprehensive reflection of the current economic state. Total non-farm payrolls account for 80% of the workers who produce almost the entire Gross Domestic Product of the United States.

The unemployment rate reached a new six-year low of 5.8%, defying analysts projections to remain unchanged at 5.9%.

Canada

Housing starts in Canada probably rose in October compared to a month earlier, the Canadian Mortgage and Housing Corporation is expected to report today at 13:15 GMT. The corresponding Housing Starts indicator is projected to come in at 199 800, up from 197 300 in September.

Housing starts reflects the rate of growth in housing construction and is a leading indicator of strength in the housing sector due to its sensitivity to changes in the business cycle. It measures the change in the annualized number of new residential buildings that began construction during the reported month.

Technical view

According to Binary Tribune’s daily analysis, the central pivot point for the pair is at 1.1361. In case USD/CAD manages to breach the first resistance level at 1.1414, it may come to test 1.1501. In case the second key resistance is broken, the pair will probably attempt to advance to 1.1554.

If USD/CAD manages to breach the first key support at 1.1274, it will probably continue to slide and test 1.1221. With this second key support broken, movement to the downside will probably continue to 1.1134.

The mid-pivot levels for today are as follows: M1 – 1.1178, M2 – 1.1248, M3 – 1.1318, M4 – 1.1388, M5 – 1.1458, M6 – 1.1528.

In weekly terms, the central pivot point is at 1.1352. The three key resistance levels are as follows: R1 – 1.1442, R2 – 1.1558, R3 – 1.1648. The three key support levels are: S1 – 1.1236, S2 – 1.1146, S3 – 1.1030.