Forex Market: USD/CAD daily trading outlook

Yesterday’s trade saw USD/CAD within the range of 1.3838-1.3980. The pair closed at 1.3930, rising 0.31% on a daily basis. It has been the 15th gain in the past 25 trading days and also a second consecutive one. The daily high has been the highest level since February 3rd, when a high of 1.4103 was registered.

At 9:13 GMT today USD/CAD was losing 0.22% for the day to trade at 1.3900. The pair touched a daily low at 1.3883 at 8:10 GMT, overshooting the range support level (S3), and a daily high at 1.3961 at 7:25 GMT.

Canada’s dollar has paired recent gains, as crude oil continued its decline. Monday marked the 20th drop in oil prices out of the past 37 trading days and also the third consecutive one. Oil futures for March delivery went down as low as $29.57 per barrel on February 8th and closed at a level of $30.18. As of 9:57 GMT today the commodity was gaining 0.76% on a daily basis to trade at $30.42 per barrel, after going up as high as $30.60 earlier. Oil has eased its slump to 9.59% so far during the current month.

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

Fundamentals

United States

Job Openings

The number of job openings in the United States probably slowed down to 5.400 million in December from a month ago, according to the median forecast by experts. In November 5.431 million job openings were reported, or the highest level since September. This indicator refers to all job 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. A lower-than-projected level of job openings will usually have a limited bearish effect on the US dollar. The Bureau of Labor Statistics is to release the official report at 15:00 GMT.

Daily and Weekly Pivot Levels

By employing the Camarilla calculation method, the daily pivot levels for USD/CAD are presented as follows:

R1 – 1.3943
R2 – 1.3956
R3 (range resistance) – 1.3969
R4 (range breakout) – 1.4008

S1 – 1.3917
S2 – 1.3904
S3 (range support) – 1.3891
S4 (range breakout) – 1.3852

By using the traditional method of calculation, the weekly pivot levels for USD/CAD are presented as follows:

Central Pivot Point – 1.3884
R1 – 1.4134
R2 – 1.4352
R3 – 1.4602

S1 – 1.3666
S2 – 1.3416
S3 – 1.3198