Forex Market: USD/CAD daily trading outlook

Yesterday’s trade saw USD/CAD within the range of 1.2560-1.2384. The pair closed 0.30% higher at 1.2543 after it gained 0.22% the prior session and is up 0.57% for the week so far.

At 7:11 GMT today USD/CAD was up 0.06% for the day at 1.2555. The pair held in a daily range of 1.2537 – 1.2576.

Fundamentals

United States

The number of people in the United States who filed for unemployment assistance for the first time during the week ended April 4th probably increased to 285 000 from 268 000 in the previous seven days. The 4-week moving average, an indicator used to iron out week-to-week volatility, was at 285 500 last week, below the preceding 7-day periods revised up average of 300 250.

Initial jobless claims number is a short-term indicator reflecting lay-offs in the country. In case the number of claims rose more than projected, this would have a bearish effect on the greenback, and vice versa.

The number of continuing jobless claims probably rose to 2 356 000 during the week ended March 28th from 2 325 000 the previous period. This indicator reflects the actual number of people unemployed and currently receiving unemployment benefits, who filed for unemployment assistance at least two weeks ago. The Department of Labor is to release the weekly report at 12:30 GMT.

Canada

The number of building permits in Canada probably rose 5.0% in February compared to a month ago, according to the median estimate by experts. In January, permits issued by the government plunged by 12.9%, following a 7.7% increase in December. 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 12:30 GMT.

Meanwhile, selling prices of new homes in Canada probably rose in February by 0.1% from a month earlier, according to analysts expectations. This follows a contraction of -0.1% in January, which ended five straight monthly increases. Home values climbed at the annualized rate of 1.4% in January following up on a 1.7% increase in December. The New Housing Price Index is a key indicator, reflecting the health of Canadian housing market. In case prices surged more than anticipated, this would be an indication of strong demand and would, therefore, have a bullish effect on the loonie. Statistics Canada will release the official data at 12:30 GMT.

Pivot points

According to Binary Tribune’s daily analysis, the pair’s central pivot point stands at 1.2496. In case it penetrates the first resistance level at 1.2607, it will encounter next resistance at 1.2672. If breached, upside movement may attempt to advance to 1.2783.

If the cross drops below its S1 level at 1.2431, it will next see support at 1.2320. If the second key support zone is breached, downward movement may extend to 1.2255.

In weekly terms, the central pivot point is at 1.2565. The three key resistance levels are as follows: R1 – 1.2704, R2 – 1.2924, R3 – 1.3063. The three key support levels are: S1 – 1.2345, S2 – 1.2206, S3 – 1.1986.