Forex Market: USD/CAD daily trading forecast

Written by Miroslav Marinov

Miroslav Marinov, a financial news editor at TradingPedia, is engaged with observing and reporting on the tendencies in the Foreign Exchange Market, as currently his focus is set on the major currencies of eight developed nations worldwide.

, | Updated: October 30, 2024

Yesterday’s trade saw USD/CAD within the range of 1.2553-1.2772. The pair closed at 1.2567, losing 0.97% on a daily basis.

At 8:07 GMT today USD/CAD was up 0.34% for the day to trade at 1.2610. The pair touched a daily high at 1.2645 at 4:40 GMT.

Fundamentals

United States

Factory orders

Factory orders in the United States probably dropped 2.2% in December compared to November, following another 0.7% fall in the prior month. If so, this would be the fifth consecutive month of decline. Excluding the sector of transportation, factory orders dropped 0.7% in November. This indicator presents the total value of new purchase orders, placed at manufacturers for durable and non-durable goods, and can provide insight into inflation and growth in the US manufacturing sector. In case new orders dropped more than anticipated, this would have a bearish effect on the greenback. The US Census Bureau will release the official data at 15:00 GMT.

Canada

Producer prices

Prices of industrial products in Canada probably rose at an annualized rate of 1.7% in December, according to expectations, following a 1.9% gain in November. If so, this would be the lowest annual increase in prices since December 2013, when a rate of 1.3% was recorded. In monthly terms, producer prices probably fell 0.5% in December, following a 0.4% drop in the preceding month. If so, this would be the fourth consecutive month of decline.

This index measures the change in prices of major industrial goods, sold by manufacturers in the country. It is also used as an indicator of commodity inflation. In case of a larger-than-anticipated decrease in prices, this would have a limited bearish effect on the local dollar. Statistics Canada is to release the official data at 13:30 GMT.

Pivot Points

According to Binary Tribune’s daily analysis, the central pivot point for the pair is at 1.2631. In case USD/CAD manages to breach the first resistance level at 1.2708, it will probably continue up to test 1.2850. In case the second key resistance is broken, the pair will probably attempt to advance to 1.2927.

If USD/CAD manages to breach the first key support at 1.2489, it will probably continue to slide and test 1.2412. With this second key support broken, the movement to the downside will probably continue to 1.2270.

The mid-Pivot levels for today are as follows: M1 – 1.2341, M2 – 1.2451, M3 – 1.2560, M4 – 1.2670, M5 – 1.2779, M6 – 1.2889.

In weekly terms, the central pivot point is at 1.2635. The three key resistance levels are as follows: R1 – 1.2895, R2 – 1.3057, R3 – 1.3317. The three key support levels are: S1 – 1.2473, S2 – 1.2213, S3 – 1.2051.