Forex Market: USD/CAD daily trading forecast

Yesterday’s trade saw USD/CAD within the range of 1.1602-1.1650. The pair closed at 1.1634, gaining 0.01% on a daily basis.

At 9:42 GMT today USD/CAD was down 0.09% for the day to trade at 1.1627. The pair touched a daily low at 1.1622 at 8:10 GMT.

Fundamentals

United States

Consumer Confidence by the CB

Confidence among consumers in the United States probably improved in December, with the corresponding index coming in at a reading of 94.0 from 88.7 in November. The latter has been the lowest level of confidence since June, when the index was reported at 86.4.

This indicator measures the level of individuals confidence in the US economic activity. It is considered as a leading indicator, as it gives an early insight into consumer spending, which accounts for most of the nations GDP. Confidence is measured on a scale of -100 to +100. A reading of -100 implies a lack of confidence, while a reading of 100 is indicative of extremely high confidence. Zero values imply neutrality. In case the index improved more than anticipated, this would provide support to the US dollar, as higher confidence suggests a greater willingness to spend and, respectively, an accelerated economic growth. The Conference Board research group is to publish the official index reading at 15:00 GMT.

Pivot Points

According to Binary Tribune’s daily analysis, the central pivot point for the pair is at 1.1629. In case USD/CAD manages to breach the first resistance level at 1.1655, it will probably continue up to test 1.1677. In case the second key resistance is broken, the pair will probably attempt to advance to 1.1703.

If USD/CAD manages to breach the first key support at 1.1607, it will probably continue to slide and test 1.1581. With this second key support broken, the movement to the downside will probably continue to 1.1559.

The mid-Pivot levels for today are as follows: M1 – 1.1570, M2 – 1.1594, M3 – 1.1618, M4 – 1.1642, M5 – 1.1666, M6 – 1.1690.

In weekly terms, the central pivot point is at 1.1623. The three key resistance levels are as follows: R1 – 1.1670, R2 – 1.1715, R3 – 1.1762. The three key support levels are: S1 – 1.1578, S2 – 1.1531, S3 – 1.1486.