Forex Market: USD/CAD daily trading forecast

Friday’s trade saw USD/CAD within the range of 1.1380-1.1476. The pair closed at 1.1435, gaining 0.46% on a daily basis.

At 8:38 GMT today USD/CAD was up 0.10% for the day to trade at 1.1448. The pair touched a daily high at 1.1459.

Fundamentals

Canada

Housing data

Housing starts in Canada probably rose to the seasonally adjusted annual level of 200 000 in November, according to expectations. If so, this would be the highest number of housing starts since May 2013, when a level of 204 600 was reported. In October the number of housing starts was at 183 600, or the lowest level since March. Housing starts are considered as a key indicator, reflecting the strength of nation’s housing sector. In case the number of housing starts increased more than expected, this might have a bullish effect on the loonie. Canada’s Mortgage and Housing Corporation will release the official numbers at 13:15 GMT.

Meanwhile, the number of building permits in Canada probably rose 3.9% in October compared to a month ago, according to the median estimate by experts. In September permits, issued by the government, were 12.7% more, or the largest monthly rate of increase since June. Building permits, as an indicator, provide information regarding demand in Canada’s housing market. In case the number of permits rose more than anticipated, this might have a bullish effect on the Canadian dollar. Statistics Canada is to release its monthly report at 13:30 GMT.

Pivot Points

According to Binary Tribune’s daily analysis, the central pivot point for the pair is at 1.1430. In case USD/CAD manages to breach the first resistance level at 1.1481, it will probably continue up to test 1.1526. In case the second key resistance is broken, the pair will probably attempt to advance to 1.1577.

If USD/CAD manages to breach the first key support at 1.1385, it will probably continue to slide and test 1.1334. With this second key support broken, the movement to the downside will probably continue to 1.1289.

The mid-Pivot levels for today are as follows: M1 – 1.1312, M2 – 1.1360, M3 – 1.1408, M4 – 1.1456, M5 – 1.1504, M6 – 1.1552.

In weekly terms, the central pivot point is at 1.1408. The three key resistance levels are as follows: R1 – 1.1503, R2 – 1.1571, R3 – 1.1666. The three key support levels are: S1 – 1.1340, S2 – 1.1245, S3 – 1.1177.