Forex Market: USD/CAD daily forecast

During yesterday’s trading session USD/CAD traded within the range of 1.1018-1.1053 and closed at 1.1032.

At 11:13 GMT today USD/CAD was losing 0.14% for the day to trade at 1.1018. The pair touched a daily low at 1.1016 at 11:01 GMT, managing to breach the first support level of 1.1017.

Fundamental view

Durable goods orders in the US probably jumped by 2.0% in March, following a 2.2% in the previous month, according to the median estimate by experts. Durable goods are new or second hand goods that usually last for a period of over 3 years. Wholesalers sell durable goods such as motor vehicles, furniture, construction materials, machinery and equipment (including household appliances), metals and minerals (except petroleum), sporting goods, toys and goods for leisure activities, renewable materials and spare parts.

Durable Goods Orders excluding Defense probably rose 1.0% in March, after a 1.8% increase in the previous month, according to the median analyst’ estimate.

The US Census Bureau is scheduled to publish an official report at 12:30 GMT. In case, durable goods orders rose more than expected, the greenback’s demand will certainly be supported.

In addition, the initial jobless claims in the US probably rose to 310 000 in the week ended April 19th, from 304 000 a week ago, according to the median estimate by experts. The indicator measures the number of applications for unemployment benefits that are recorded each week in a report prepared by the Bureau of Labor Statistics in the United States. Initial application or (Initial Claim) means a completed document from an unemployed person before the local government, which is considered a claim for compensation or the possibility of compensation. The completion of the initial claim marks the beginning of a period in which the applicant receives unemployment benefits. The survey covers the number of applications registered in the previous week and is an important indicator concerning the health of the US labor market.

The statistical arm of the US Department of Labor will release an official report at 12:30 GMT today. If jobless claims rose less than expected, this will provide support for the US dollar.

Technical view

According to Binary Tribune’s daily analysis, in case USD/CAD manages to breach the first resistance level at 1.1051, it will probably continue up to test 1.1069. In case the second key resistance is broken, the pair will probably attempt to advance to 1.1086.

If USD/CAD manages to breach the first key support at 1.1017, it will probably continue to slide and test 1.0999. With this second key support broken, the movement to the downside will probably continue to 1.0981.