Forex Market: USD/CAD daily trading forecast

Yesterday’s trade saw USD/CAD within the range of 1.1228-1.1297. The pair closed at 1.1245, losing 0.10% on a daily basis.

At 8:21 GMT today USD/CAD was up 0.02% for the day to trade at 1.1246. The pair touched a daily high at 1.1269.

Fundamentals

Canada

The deficit on Canadian current account probably shrank to CAD 11.0 billion during the third quarter of the year, according to market expectations, from CAD 11.87 billion in the preceding quarter. If so, this would be the smallest gap since Q1 2012, when a deficit figure of CAD 10.15 billion was reported.

The current account represents the net flow of current transactions, which includes goods, services and interest payments. It basically measures the difference in value between imported and exported goods, services and interest payments during the tracked period. The imported and exported goods balance is actually the Balance of Trade. A positive value suggests a current account surplus, which indicates that the flow of capital in Canada is higher than the outflow, which increases demand for the national currency. Therefore, an expanding current account surplus or a contracting current account deficit generally provide support to the loonie, and vice versa. Statistics Canada is to release the official figure at 13:30 GMT.

Pivot Points

According to Binary Tribune’s daily analysis, the central pivot point for the pair is at 1.1257. In case USD/CAD manages to breach the first resistance level at 1.1285, it will probably continue up to test 1.1326. In case the second key resistance is broken, the pair will probably attempt to advance to 1.1354.

If USD/CAD manages to breach the first key support at 1.1216, it will probably continue to slide and test 1.1188. With this second key support broken, the movement to the downside will probably continue to 1.1147.

The mid-Pivot levels for today are as follows: M1 – 1.1168, M2 – 1.1202, M3 – 1.1237, M4 – 1.1271, M5 – 1.1306, M6 – 1.1340.

In weekly terms, the central pivot point is at 1.1263. The three key resistance levels are as follows: R1 – 1.1337, R2 – 1.1443, R3 – 1.1517. The three key support levels are: S1 – 1.1157, S2 – 1.1083, S3 – 1.0977.