Forex Market: USD/CAD daily trading forecast

Friday’s trade saw USD/CAD within the range of 1.2414-1.2549. The pair closed at 1.2526, gaining 0.73% on a daily basis. USD/CAD depreciated 1.62% for the whole week, or the first loss in the past 11 weeks. This has also been the most considerable weekly loss since the week ended on June 2nd 2013.

At 12:37 GMT today USD/CAD was down 0.24% for the day to trade at 1.2497. The pair touched a daily low at 1.2483 at 12:17 GMT.

Fundamentals

Canada

Housing Starts

Housing starts in Canada probably dropped to the seasonally adjusted annual level of 177 500 in January, according to expectations. If so, this would be the lowest number of housing starts since March 2014, when a level of 156 600 was reported. In December the number of housing starts was at 180 600. Housing starts are considered as a key indicator, reflecting the strength of the nation’s housing sector. In case the number of housing starts decreased more than expected, this might have a bearish effect on the Canadian dollar. Canada’s Mortgage and Housing Corporation will release the official numbers at 13:15 GMT.

Pivot Points

According to Binary Tribune’s daily analysis, the central pivot point for the pair is at 1.2496. In case USD/CAD manages to breach the first resistance level at 1.2579, it will probably continue up to test 1.2631. In case the second key resistance is broken, the pair will probably attempt to advance to 1.2714.

If USD/CAD manages to breach the first key support at 1.2444, it will probably continue to slide and test 1.2361. With this second key support broken, the movement to the downside will probably continue to 1.2309.

The mid-Pivot levels for Monday are as follows: M1 – 1.2335, M2 – 1.2403, M3 – 1.2470, M4 – 1.2538, M5 – 1.2605, M6 – 1.2673.

In weekly terms, the central pivot point is at 1.2550. The three key resistance levels are as follows: R1 – 1.2750, R2 – 1.2973, R3 – 1.3173. The three key support levels are: S1 – 1.2327, S2 – 1.2127, S3 – 1.1904.