Forex Market: USD/CAD daily forecast

During yesterday’s trading session USD/CAD traded within the range of 1.0906-1.0940 and closed at 1.0915, losing 0.11% for the day.

At 11:14 GMT today USD/CAD was losing 0.19% for the day to trade at 1.0893. The pair touched a daily low at 1.0887 at 9:30 GMT, breaching the first key daily and the first key weekly support levels.

Fundamental view

United States

Initial jobless claims in the US probably rose to 307 000 in the week ended August 9th, from 289 000 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.

Canada

Selling prices of new homes in Canada probably inched up 0.2% in June compared to a month ago, when prices increased 0.1%. 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.

Technical view

According to Binary Tribune’s daily analysis, the central pivot point for the pair is at 1.0920. In case USD/CAD manages to breach the first resistance level at 1.0935, it will probably continue up to test 1.0954. In case the second key resistance is broken, the pair will probably attempt to advance to 1.0969.

If USD/CAD manages to breach the first key support at 1.0901, it will probably continue to slide and test 1.0884. With this second key support broken, the movement to the downside will probably continue to 1.0867.

In weekly terms, the central pivot point is at 1.0954. The three key resistance levels are as follows: R1 – 1.1005, R2 – 1.1036, R3 – 1.1087. The three key support levels are: S1 – 1.0923, S2 – 1.0872, S3 – 1.0841.