Forex Market: USD/CAD daily forecast

During yesterday’s trading session USD/CAD traded within the range of 1.0876-1.0908 and closed at 1.0898.

At 11:26 GMT today USD/CAD was losing 0.26% for the day to trade at 1.0871. The pair touched a daily low at 1.0870 at 11:24 GMT, breaching the first key support.

Fundamental view

Canada

Annualized number of housing starts in Canada probably increased to 177 000 in April from 156 823 in the previous month. Housing starts are considered as a key indicator, reflecting nation’s housing sector’ resilience. In case the number of housing starts rose more than expected, this would provide support to the loonie. Canada’s Mortgage and Housing Corporation will release the official numbers at 12:15 GMT.

In addition, selling prices of new homes in Canada probably rose 0.2% in March compared to a month ago, following a 0.2% increase in February. The New Housing Price Index is a key indicator, reflecting the health of nation’s housing market. In case prices surged more than anticipated, this would have a bullish effect on the loonie.

Statistics Canada will release the official data at 12:30 GMT.

United States

The initial jobless claims in the US probably fell to 325 000 in the week ended May 3rd, from 344 000 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 data is due to be released at 12:30 GMT. In case initial jobless claims drop more than expected, this will heighten the appeal of the greenback.

Technical view

According to Binary Tribune’s daily analysis, in case USD/CAD manages to breach the first resistance level at 1.0912, it will probably continue up to test 1.0926. In case the second key resistance is broken, the pair will probably attempt to advance to 1.0944.

If USD/CAD manages to breach the first key support at 1.0880, it will probably continue to slide and test 1.0862. With this second key support broken, the movement to the downside will probably continue to 1.0848.