Forex Market: USD/CAD daily trading forecast

Yesterday’s trade saw USD/CAD within the range of 1.1832-1.1975. The pair closed at 1.1974, gaining 1.10% on a daily basis.

At 8:33 GMT today USD/CAD was unchanged for the day to trade at 1.1974. The pair broke the first key weekly resistance and touched a daily high at 1.1980 at 7:30 GMT.

Fundamentals

United States

Job openings

The number of job openings in the United States probably rose to 4.848 million in November from 4.834 million in the prior month. If so, this would be the highest level since August, when 4.853 million job openings were reported. This indicator refers to all positions that are open, but not filled on the last business day of the month. Job openings are part of the Job Openings and Labor Turnover Survey (JOLTS), which gathers data from about 16 400 non-farm establishments including retailers and manufacturers, as well as federal, state, and local government entities in the 50 states and the District of Columbia. The survey assesses the unmet demand for labor in the labor market. Higher-than-projected number of openings is usually dollar positive. The Bureau of Labor Statistics is to release the official data at 15:00 GMT.

Monthly Budget Statement

The United States probably recorded a government budget surplus of USD 22.0 billion in December, according to market expectations, after a deficit of USD 56.8 billion during the previous month. The latter was a 58% decrease compared to November 2013. In November total receipts were at the amount of USD 191.4 billion, or a 4.8% increase compared to the same month a year earlier, while total outlays were recorded at USD 248.3 billion during the period, down 21.8%. The budget results were influenced by differences in the calendar, while some payments went out in October rather than November 2014, according to the report by the US Treasury.

A larger-than-projected surplus would have a certain bullish effect on the greenback. The Financial Management Service is to publish the official figure at 19:00 GMT.

Pivot Points

According to Binary Tribune’s daily analysis, the central pivot point for the pair is at 1.1927. In case USD/CAD manages to breach the first resistance level at 1.2022, it will probably continue up to test 1.2070. In case the second key resistance is broken, the pair will probably attempt to advance to 1.2165.

If USD/CAD manages to breach the first key support at 1.1879, it will probably continue to slide and test 1.1784. With this second key support broken, the movement to the downside will probably continue to 1.1736.

The mid-Pivot levels for today are as follows: M1 – 1.1760, M2 – 1.1832, M3 – 1.1903, M4 – 1.1975, M5 – 1.2046, M6 – 1.2118.

In weekly terms, the central pivot point is at 1.1828. The three key resistance levels are as follows: R1 – 1.1929, R2 – 1.1990, R3 – 1.2091. The three key support levels are: S1 – 1.1767, S2 – 1.1666, S3 – 1.1605.