Yesterday’s trade saw USD/CAD within the range of 1.1743-1.1841. The pair closed at 1.1759, losing 0.28% on a daily basis.
At 7:42 GMT today USD/CAD was down 0.05% for the day to trade at 1.1755. The pair touched a daily low at 1.1731.
Fundamentals
United States
ISM Services data
Activity in United States’ sector of services probably was lower in December, with the corresponding non-manufacturing PMI coming in at a reading of 58.5, according to expectations, from 59.3 in November. The latter has been the highest level of the PMI since August, when it was reported at 59.6. This is a compound index, based on the values of four equally-weighted components, that comprise it. These sub-indexes reflect seasonally adjusted new orders, seasonally adjusted employment, seasonally adjusted business activity and supplier deliveries.
The business report is based on data compiled from monthly replies to questions asked of over 370 purchasing and supply executives operating in over 62 different industries, which represent nine divisions from the Standard Industrial Classification (SIC) categories.
Participants can either respond with “better”, “same”, or “worse” to the questions about the industry, in which they operate. The resulting PMI value is measured from 0 to 100. If the index shows a value of 100.0, this means that 100% of the respondents reported an improvement in conditions. If the index shows a value of 0, this means that 100% or the respondents reported a deterioration in conditions. If 100% of the respondents saw no change in conditions, the index will show a reading of 50.0. Therefore, readings above the key level of 50.0 are indicative of expanding activity. In case the slowdown was larger than anticipated, this would lead to a sell-off in the US dollar. The Institute for Supply Management (ISM) is to release the official PMI reading at 15:00 GMT.
Canada
Producer prices
Prices of industrial products in Canada probably rose at an annualized rate of 2.9% in November, according to expectations, following a 2.5% gain in October. If so, this would be the most significant annual increase in prices since June, when a rate of 3.1% was recorded. This index measures the change in prices of industrial goods, sold by manufacturers in the country. It is also used as an indicator of commodity inflation. In case of a larger increase in prices, the local dollar would receive support. Statistics Canada is to release the official data at 13:30 GMT.
Pivot Points
According to Binary Tribune’s daily analysis, the central pivot point for the pair is at 1.1781. In case USD/CAD manages to breach the first resistance level at 1.1819, it will probably continue up to test 1.1879. In case the second key resistance is broken, the pair will probably attempt to advance to 1.1917.
If USD/CAD manages to breach the first key support at 1.1721, it will probably continue to slide and test 1.1683. With this second key support broken, the movement to the downside will probably continue to 1.1623.
The mid-Pivot levels for today are as follows: M1 – 1.1653, M2 – 1.1702, M3 – 1.1751, M4 – 1.1800, M5 – 1.1849, M6 – 1.1898.
In weekly terms, the central pivot point is at 1.1710. The three key resistance levels are as follows: R1 – 1.1855, R2 – 1.1930, R3 – 1.2075. The three key support levels are: S1 – 1.1635, S2 – 1.1490, S3 – 1.1415.
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