Forex Market: USD/CAD daily trading forecast

Yesterday’s trade saw USD/CAD within the range of 1.1647-1.1575. The pair closed at 1.1627, gaining 0.14% on a daily basis.

At 10:26 GMT today USD/CAD was down 0.14% for the day to trade at 1.1618. The pair held in a daily range of 1.1613-1.1646.

Fundamental view

United States

The Commerce Department’s Bureau of Economic Analysis is expected to report that economic growth in the US probably accelerated to a final annualized reading of 4.3% in the the third quarter, an upward revision from a preliminary estimate of 3.9%. Meanwhile, durable goods orders, which reflect the health of the country’s manufacturing sector, likely grew by 3.0% in November, while a core measure probably rebounded to 1.1%.

Personal income likely rose by 0.5% in November on a monthly basis, compared to 0.2% in October. If confirmed, this would match expectations for a 0.5% jump in personal spending, which also grew by 0.2% the preceding month.

In other reports, December consumer sentiment likely remained high but an inch lower, with the corresponding Thomson Reuters/University of Michigan index projected at 93.1 from 93.8 in November, while new home sales increased.

Canada

Data by Canada’s statistics agency (Statistics Canada) is expected to show that the Canadian economy probably expanded by 0.1% in October on a monthly basis, compared to 0.4% during the previous month, which reversed a 0.1% contraction in August.

Technical view

According to Binary Tribune’s daily analysis, the central pivot point for the pair is at 1.1616. In case USD/CAD manages to breach the first resistance level at 1.1658, it will probably continue up to test 1.1688. In case the second key resistance is broken, the pair will probably attempt to advance to 1.1730.

If USD/CAD manages to breach the first key support at 1.1586, it will probably continue to slide and test 1.1544. With this second key support broken, movement to the downside will probably continue to 1.1514.

The mid-Pivot levels for today are as follows: M1 – 1.1529, M2 – 1.1565, M3 – 1.1601, M4 – 1.1637, M5 – 1.1673, M6 – 1.1709.

In weekly terms, the central pivot point is at 1.1607. The three key resistance levels are as follows: R1 – 1.1668, R2 – 1.1736, R3 – 1.1797. The three key support levels are: S1 – 1.1539, S2 – 1.1478, S3 – 1.1410.