Forex Market: USD/CAD daily trading outlook

Yesterday’s trade saw USD/CAD within the range of 1.3786-1.3960. The pair closed at 1.3884, losing 0.33% on a daily basis. It has been the 11th drop in the past 26 trading days and also the sharpest one since February 3rd.

At 9:46 GMT today USD/CAD was edging down 0.12% for the day to trade at 1.3867. The pair touched a daily low at 1.3844 at 9:05 GMT, overshooting the daily S2 level, and a daily high at 1.3921 during mid-Asian trade.

Canada’s dollar has trimmed recent gains, as crude oil continued its decline. Tuesday marked the 21st drop in oil prices out of the past 38 trading days and also the fourth consecutive one. Oil futures for March delivery went down as low as $27.75 per barrel on February 9th, or the lowest level since January 21st, and closed at a level of $28.39. As of 9:36 GMT today the commodity was gaining 0.53% on a daily basis to trade at $28.53 per barrel, after going up as high as $28.73 earlier. Oil has expanded its slump to 15.21% so far during the current month.

On Wednesday USD/CAD trading may be influenced by the following event listed below.

Fundamentals

United States

Fed Chair Janet Yellens testimony

At 15:00 GMT Federal Reserve Chair, Janet Yellen, is expected to testify before the US Congress. After the testimony a Questions and Answers session will be held, which may trigger high volatility in US stock markets as well as in the Foreign Exchange Market.

Daily and Weekly Pivot Levels

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

R1 – 1.3900
R2 – 1.3916
R3 (range resistance) – 1.3932
R4 (range breakout) – 1.3980

S1 – 1.3868
S2 – 1.3852
S3 (range support) – 1.3836
S4 (range breakout) – 1.3788

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