Forex Market: USD/CAD daily trading outlook

Written by Miroslav Marinov

Miroslav Marinov, a financial news editor at TradingPedia, is engaged with observing and reporting on the tendencies in the Foreign Exchange Market, as currently his focus is set on the major currencies of eight developed nations worldwide.

, | Updated: October 30, 2024

Yesterday’s trade saw USD/CAD within the range of 1.3812-1.3985. The pair closed at 1.3937, rising 0.45% on a daily basis. It has been the sharpest daily rate of increase since December 28th, when the pair advanced 0.60%. The daily high, in addition, has been the highest level since December 21st, when a high of 1.3995 was reached.

At 9:44 GMT today USD/CAD was losing 0.11% for the day to trade at 1.3935. The pair touched a daily low at 1.3898 during mid-Asian trading session, while the current daily high stands at 1.3952, registered during the early hours of the Asian session. Resistance may be encountered at the high from January 4th (1.3985) and then – at the high from December 21st (1.3995). A break above the latter may test the high from December 18th (1.4001). Support, on the other hand, may be encountered at the hourly 55-period EMA (1.3905), then – at the hourly 200-period EMA (1.3874), and finally – close to the low from January 4th (1.3812).

On Tuesday USD/CAD trading may be influenced by the following macroeconomic report as listed below.

Fundamentals

Canada

Producer Prices

Prices of industrial products in Canada probably remained flat in November, according to market expectations, after three consecutive months of decline. In October prices were down 0.5%, marking the steepest monthly slump since April 2015, when a 0.9% drop was reported. 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 the Industrial Product Price Index outpaced the median forecast by experts in November, this would have a limited bullish effect on the Canadian dollar, as the latter tends to be sensitive to changes in commodity prices. Statistics Canada is to release the official data at 13:30 GMT.