Forex Market: USD/CAD daily trading forecast

Friday’s trade saw USD/CAD within the range of 1.2418-1.2566. The daily high has also been the highest level since February 12th, when a high of 1.2648 was recorded. The pair closed at 1.2528, up 0.26% on a daily basis and marking a third consecutive daily gain.

At 8:20 GMT today USD/CAD was up 0.26% for the day to trade at 1.2563. The pair touched a daily high at 1.2567 at 8:19 GMT.

Fundamentals

United States

Existing Home Sales

The index of existing home sales in the United States probably dropped 0.8% to a level of 4.97 million in January compared to December. In December compared to November existing home sales rose 2.4% to 5.04 million. The sample of data encompasses condos, co-ops and single-family houses.

Statistical data on existing home sales are often used along with statistical figures regarding the new home sales and pending home sales, with the major objective being to draw a conclusion how the nation’s housing sector is performing, regardless of interest rates. The most active house-purchasing period in the United States is usually between the months of March through June. Therefore, in case statistical data revealed a sudden drop in the number of homes sold rather than an improvement during this period, this would be considered as a signal of weakness in the country’s housing market.

The report on existing home sales usually does not cause a real direct impact on US economy. Actually, this effect appears to be limited, due to the fact that nothing is produced with the mere sale of an existing home. In terms of economic activity, the sale of an existing house may be related only to interior design and purchases of new furniture.

In case the index decreased more than anticipated, this would have a bearish effect on the US dollar. The National Association of Realtors (NAR) is to release the official figure at 15:00 GMT.

Pivot Points

According to Binary Tribune’s daily analysis, the central pivot point for the pair is at 1.2504. In case USD/CAD manages to breach the first resistance level at 1.2590, it will probably continue up to test 1.2652. In case the second key resistance is broken, the pair will probably attempt to advance to 1.2738.

If USD/CAD manages to breach the first key support at 1.2442, it will probably continue to slide and test 1.2356. With this second key support broken, the movement to the downside will probably continue to 1.2294.

The mid-Pivot levels for today are as follows: M1 – 1.2325, M2 – 1.2399, M3 – 1.2473, M4 – 1.2547, M5 – 1.2621, M6 – 1.2695.

In weekly terms, the central pivot point is at 1.2484. The three key resistance levels are as follows: R1 – 1.2610, R2 – 1.2691, R3 – 1.2817. The three key support levels are: S1 – 1.2403, S2 – 1.2277, S3 – 1.2196.