Forex Market: USD/CAD daily trading outlook

Yesterdays trade saw USD/CAD within the range of 1.2780 – 1.2652. The pair closed 0.5% higher at 1.2722, rising for a third day.

At 06:39 GMT today USD/CAD was up 0.24% to trade at 1.2738. The cross held in a daily range of 1.2703 – 1.2752 and is up 1.3% for the week.

Fundamentals

United States

The Mortgage Bankers Association will release its mortgage applications data for the week ended July 3rd at 11:00 GMT, projected to register a decrease of 2.9%. The MBA Mortgage Applications index measures the change in the number of new applications for mortgages backed by the Association during the reported week. It includes both refinancing and home purchases. A better-than-expected reading should be considered as positive for the US dollar, and vice versa.

The index slid a seasonally-adjusted 4.7% in the week ended June 26th compared to a week earlier, and 5% on an unadjusted basis. The index of refinancing applications tumbled 5% from the previous week to the lowest since December 2014, while the gauge of loan requests for home purchases decreased 4%.

Canada

The number of building permits issued by the government in Canada probably slid 5.0% in May compared to a month earlier, according to the median estimate by experts. In April, permits issued for new buildings, alterations, additions and renovations surged by 11.6%, following a 13.6% increase in March. Building permits, as an indicator, provide information regarding demand in Canada’s housing market. In case the number of permits rose more than anticipated, this would have a bullish effect on the Canadian dollar. Statistics Canada is to release its monthly report at 12:30 GMT.

Pivot points

According to Binary Tribune’s daily analysis, the pair’s central pivot point stands at 1.2718. In case it penetrates the first resistance level at 1.2784, it will encounter next resistance at 1.2846. If breached, upside movement may attempt to advance to 1.2912.

If the cross drops below its S1 level at 1.2656, it will next see support at 1.2590. If the second key support zone is breached, downward movement may extend to 1.2528.

In weekly terms, the central pivot point is at 1.2504. The three key resistance levels are as follows: R1 – 1.2704, R2 – 1.2834, R3 – 1.3034. The three key support levels are: S1 – 1.2374, S2 – 1.2174, S3 – 1.2044.