Join our community of traders FOR FREE!

  • Learn
  • Improve yourself
  • Get Rewards
Learn More

Forex Market: USD/CAD daily trading forecast

Yesterday’s trade saw USD/CAD within the range of 1.1235-1.1354. The pair closed at 1.1328, gaining 0.74% on a daily basis.

At 10:10 GMT today USD/CAD was up 0.46% for the day to trade at 1.1379. The pair broke the first key daily and the first key weekly resistance levels and touched a daily high at 1.1391.



Gross Domestic Product

Canadian Gross Domestic Product (GDP) probably expanded 0.4% in September compared to August, according to the median forecast by experts, following a drop of 0.1% in August compared to July. Canada’s economy probably grew at an annualized pace of 2.1% during the third quarter, after in Q2 the GDP expanded 3.1%. The latter has been the fastest rate of growth since Q3 2011, when nation’s economy grew 4.2%. Final domestic demand rose 0.7% in Q2, after remaining flat in the first quarter. The increase was mostly due to higher household final consumption expenditures. The latter increased 0.9% as a result of increased outlays on goods (+1.2%) and services (+0.7%). Business gross fixed capital formation increased 0.8%, following two consecutive quarters of decline. Investment in residential structures grew 2.9%, contributing the most to the overall gain, according to the report by the Statistics Canada. Exports of goods and services rose 4.2% in the second quarter, following a 0.2% drop in Q1, while imports of goods and services were up 2.7% during the same period.

The GDP represents the total monetary value of all goods and services produced by one nation over a specific period of time. What is more, it is the broadest indicator of a country’s economic activity. The report on GDP is closely watched by traders, operating in the Foreign Exchange Market, as they will usually look for higher rates of growth as a sign that interest rates will follow the same direction. Higher interest rates will attract more investors, willing to purchase assets in the country, while, at the same time, this will increase demand for the national currency. If an economy is experiencing a robust rate of growth, the benefits will eventually affect the end consumer, because of the increased likelihood of spending, while through increased consumer expenditures economy has the potential to expand even further. Therefore, in case Canada’s growth outpaced expectations, this would heighten the appeal of the Canadian dollar. Statistics Canada is expected to release the official figure at 13:30 GMT.

Pivot Points

According to Binary Tribune’s daily analysis, the central pivot point for the pair is at 1.1306. In case USD/CAD manages to breach the first resistance level at 1.1376, it will probably continue up to test 1.1425. In case the second key resistance is broken, the pair will probably attempt to advance to 1.1495.

If USD/CAD manages to breach the first key support at 1.1257, it will probably continue to slide and test 1.1187. With this second key support broken, the movement to the downside will probably continue to 1.1138.

The mid-Pivot levels for today are as follows: M1 – 1.1163, M2 – 1.1222, M3 – 1.1282, M4 – 1.1341, M5 – 1.1401, M6 – 1.1460.

In weekly terms, the central pivot point is at 1.1263. The three key resistance levels are as follows: R1 – 1.1337, R2 – 1.1443, R3 – 1.1517. The three key support levels are: S1 – 1.1157, S2 – 1.1083, S3 – 1.0977. is a financial media specialized in providing daily news and education covering Forex, equities and commodities. Our academies for traders cover Forex, Price Action and Social Trading.

Related News