Forex Market: USD/CAD daily trading outlook

Friday’s trade saw USD/CAD within the range of 1.2656-1.2785. The pair closed at 1.2785, going up 0.50% on a daily basis. It has been the 58th gain in the past 114 trading days, a second consecutive one and also the steepest one since May 18th, when the pair advanced 0.98%. The daily high has been the highest level since June 7th, when a high of 1.2839 was registered. In weekly terms, USD/CAD depreciated 1.15% during the past week. It has been the 17th drop in the past 23 weeks, a third consecutive one and also the sharpest one since the week ended on April 24th, when the pair lost 1.19% of its value. USD/CAD has gone down 2.47% so far in June, following a 4.31% surge in the prior month.

At 8:23 GMT today USD/CAD was edging down 0.11% on the day to trade at 1.2766. The pair touched a daily high at 1.2811 during the late phase of the Asian trading session, overshooting the daily R2 level, and a daily low at 1.2763 at 8:22 GMT.

Canadas dollar continued to retreat against its US counterpart, as crude oil futures tested lows unseen since June 6th on Friday. Crude oil marked its 57th drop out of the past 125 trading days on June 10th. Oil for July delivery went down as low as $48.80 per barrel and closed at $49.07, plunging 2.95% compared to Thursday’s close. As of 8:31 GMT today the commodity was edging down 0.10% to trade at $48.62, after going down as low as $48.22 per barrel earlier, or its lowest level since June 2nd.

No relevant macroeconomic reports and other events, which may influence USD/CAD trading, are scheduled on Monday.

Correlation with other Majors

Taking into account the business week ended on June 10th and the daily closing levels of the major currency pairs, we come to the following conclusions in regard to the strength of relationship:

USD/CAD to USD/CHF (0.9431, or very strong)
USD/CAD to USD/JPY (0.5929, or strong)
USD/CAD to NZD/USD (-0.3938, or moderate)
USD/CAD to EUR/USD (-0.4403, or moderate)
USD/CAD to GBP/USD (-0.5424, or strong)
USD/CAD to AUD/USD (-0.9081, or very strong)

1. During the examined period USD/CAD moved strongly in the opposite direction compared to GBP/USD.

2. USD/CAD moved strongly in one and the same direction with USD/JPY during the past week.

3. USD/CAD moved almost equally in one and the same direction with USD/CHF during the period in question, while moving almost equally in the opposite direction compared to AUD/USD.

Daily, Weekly and Monthly Pivot Levels

By employing the Camarilla calculation method, the daily pivot levels for USD/CAD are presented as follows:

R1 – 1.2797
R2 – 1.2809
R3 (range resistance) – 1.2820
R4 (range breakout) – 1.2856

S1 – 1.2773
S2 – 1.2761
S3 (range support) – 1.2750
S4 (range breakout) – 1.2714

By using the traditional method of calculation, the weekly pivot levels for USD/CAD are presented as follows:

Central Pivot Point – 1.2807
R1 – 1.2962
R2 – 1.3140
R3 – 1.3295

S1 – 1.2629
S2 – 1.2474
S3 – 1.2296

In monthly terms, for USD/CAD we have the following pivots:

Central Pivot Point – 1.2914
R1 – 1.3317
R2 – 1.3646
R3 – 1.4102

S1 – 1.2638
S2 – 1.2182
S3 – 1.1906