During yesterday’s trading session USD/CAD traded within the range of 1.0877-1.0930 and closed at 1.0907.
At 8:56 GMT today USD/CAD was adding 0.28% for the day to trade at 1.0934. The pair touched a daily high at 1.0935 at 8:50 GMT, breaching the first key daily resistance level and the two key weekly resistance levels.
Fundamental view
United States
Employers in all sectors of economy in the United States, excluding the farming industry, probably added 225 000 new jobs in July, according to the median forecast by experts, after a job gain of 288 000 in June. The non-farm payrolls report presents the total number of US employees in any business, excluding the following four groups: farm employees, general government employees, employees of non-profit organizations, private household employees. The reading, released most often, varies between + 10 000 and as much as + 250 000 at times when economy is performing well. Despite the volatility and the possibility of large revisions, the non-farm payrolls indicator presents the most timely and comprehensive reflection of the current economic state. Total non-farm payrolls account for 80% of the workers, who produce the entire Gross Domestic Product of the United States. In case of a larger-than-expected gain in jobs, the US dollar would receive a boost.
Average Hourly Earnings probably increased 0.2% in July compared to June, when earnings rose by another 0.2%.
At the same time, the rate of unemployment in the country probably remained unchanged at 6.1% in July, matching Junes reading that was the weakest since July 2008. It represents the percentage of the eligible work force that is unemployed, but is actively seeking employment. A person who is not classified as employed or unemployed is excluded from the statistics. One counts as unemployed, if he/she falls in all of the following categories: he/she was unemployed during the last week; he/she is able bodied; he/she has been seeking employment for a period of at least four weeks, which end during the week when the research is conducted. People, who have been laid off and are awaiting to be hired again, are also classified as unemployed. In case the unemployment rate met expectations or even fell further, this would have a bullish effect on the greenback. The Bureau of Labor Statistics will release the official employment data at 12:30 GMT.
Activity in United States’ sector of services probably expanded during July, with the corresponding non-manufacturing PMI coming in at a reading of 56.0, according to expectations, from 55.3 in June. This is a compound index, based on the values of four equally-weighted components, that comprise it. These sub-indexes reflect seasonally adjusted new orders, seasonally adjusted employment, seasonally adjusted business activity and supplier deliveries.
The business report is based on data compiled from monthly replies to questions asked of over 370 purchasing and supply executives operating in over 62 different industries, which represent nine divisions from the Standard Industrial Classification (SIC) categories. Readings above the key level of 50.0 are indicative of expanding activity. In case market expectations are exceeded, US dollar will receive a boost. The Institute for Supply Management (ISM) is to release the official PMI reading at 14:00 GMT.
Canada
The RBC Canadian Manufacturing PMI probably shrank to 53.4 in July, according to the median analysts estimate, from 53.5 in the prior month, that was the strongest since November 2013.
The report on the RBC PMI for Manufacturing in Canada is based on data collected from monthly replies to questionnaires sent to supply managers in over 400 industrial companies. RBC PMI is a composed index based on five individual indexes: new orders, production, employment, delivery time, stocks of purchases. Values of the index above the key level of 50.0 indicate overall increase in the activity in the sector, while readings below 50.0 are indicative of contraction in the sectors activity. PMI studies are earlier indicators of economic conditions published each month, therefore, are available much before the publication of relevant data from government authorities.
Royal Bank of Canada will release an official report at 13:30 GMT. In case, activity in the sector shrank less than expcted, this would boost loonies demand.
Technical view
According to Binary Tribune’s daily analysis, the central pivot point for the pair is at 1.0905. In case USD/CAD manages to breach the first resistance level at 1.0932, it will probably continue up to test 1.0958. In case the second key resistance is broken, the pair will probably attempt to advance to 1.0985.
If USD/CAD manages to breach the first key support at 1.0879, it will probably continue to slide and test 1.0852. With this second key support broken, the movement to the downside will probably continue to 1.0826.
In weekly terms, the central pivot point is at 1.0782. The three key resistance levels are as follows: R1 – 1.0852, R2 – 1.0892, R3 – 1.0962. The three key support levels are: S1 – 1.0742, S2 – 1.0672, S3 – 1.0632.
TradingPedia.com is a financial media specialized in providing daily news and education covering Forex, equities and commodities. Our academies for traders cover 
