Forex Market: USD/CAD trading outlook for Thursday (November 24th 2016)

Yesterday’s trade (in GMT terms) saw USD/CAD within the range of 1.3424-1.3518. The pair closed at 1.3497, edging up 0.32% compared to Tuesdays close. It has been the 206th gain in the past 388 trading days and also a second consecutive one. The daily high has been a level not seen since November 18th, when a high of 1.3566 was registered. The major pair has increased its advance to 0.66% so far during the current month, following a 2.14% surge in October.

At 7:55 GMT today USD/CAD was edging up 0.21% on the day to trade at 1.3525. The pair touched a daily high at 1.3529 during early European trade, overshooting the range resistance level (R3), and a daily low at 1.3481 during the early phase of the Asian trading session.

No relevant macroeconomic reports or other events, which may influence USD/CAD trading, are scheduled on Thursday.

US Thanksgiving Day

Today is the Thanksgiving Day national holiday in the United States, which commemorates harvest. Banks in the country are to remain closed, while market trading volumes – thin.

Bond Yield Spread

The yield on Canada’s 2-year government bonds went up as high as 0.680% on November 23rd, after which it closed at 0.669% to add 1.3 basis points (0.013 percentage point) compared to November 22nd.

Meanwhile, the yield on US 2-year government bonds climbed as high as 1.151% on November 23rd, or the highest level in more than 2 years, after which it fell to 1.131% at the close to add 3.6 basis points (0.036 percentage point) compared to November 22nd.

The spread between 2-year US and 2-year Canadian bond yields, which reflects the flow of funds in a short term, widened to 0.462% on November 23rd from 0.439% on November 22nd. The November 23rd yield spread has been the largest one since January 19th, when the difference was 0.575%.

Daily, Weekly and Monthly Pivot Levels

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

R1 – 1.3506
R2 – 1.3514
R3 (Range Resistance – Sell) – 1.3523
R4 (Long Breakout) – 1.3549
R5 (Breakout Target 1) – 1.3579
R6 (Breakout Target 2) – 1.3592

S1 – 1.3488
S2 – 1.3480
S3 (Range Support – Buy) – 1.3471
S4 (Short Breakout) – 1.3445
S5 (Breakout Target 1) – 1.3415
S6 (Breakout Target 2) – 1.3402

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

Central Pivot Point – 1.3501
R1 – 1.3601
R2 – 1.3691
R3 – 1.3791
R4 – 1.3892

S1 – 1.3411
S2 – 1.3311
S3 – 1.3221
S4 – 1.3132

In monthly terms, for USD/CAD we have the following pivots:

Central Pivot Point – 1.3283
R1 – 1.3560
R2 – 1.3711
R3 – 1.3988
R4 – 1.4265

S1 – 1.3132
S2 – 1.2855
S3 – 1.2704
S4 – 1.2553