fbpx

Join our community of traders FOR FREE!

  • Learn
  • Improve yourself
  • Get Rewards
Learn More

Forex Market: USD/CAD daily trading outlook

During yesterday’s trading session USD/CAD traded within the range of 1.0878-1.0856 and closed at 1.0871, down 0.06% on the day.

At 9:56 GMT today USD/CAD was up 0.40% to trade at 1.0914. The pair fell to a daily low at 1.0867, while day’s high of 1.0918 was touched at 09:34 GMT and broke all three daily pivot resistance levels.

Fundamental view

United States

Activity in United States’ manufacturing sector probably continued to expand during August, with the corresponding ISM manufacturing PMI expected to come in at a reading of 56.8, according to expectations, from 57.1 in July. If confirmed, this would be the fifteenth straight month of factory growth.

The Institute of Supply Management releases its Manufacturing Report on Business each month, giving a complete overview of the country’s manufacturing sector. It is based on five main indicators with different weight: New Orders, Production, Employment, Supplier Deliveries and Inventories.

The Institute of Supply Management conducts a survey among the executives of more than 400 industrial companies, which are asked to share their opinion regarding the economic conditions in which they operate. Rising readings, and especially better-than-expected ones, are bullish for the US dollar, and vice versa.

At 13:45, Markit Economics will report separately on US factory growth during August. According to preliminary estimates, the respective Manufacturing PMI is expected to confirm the preliminary reading of 58.0, released on August 21st, marking a considerable acceleration of growth compared to July’s 55.8. If confirmed, this would be the highest pace of expansion since April 2010, rebounding from July’s three-month low.

Canada

Royal Bank of Canada is expected to report at at 13:30 GMT that activity in Canadas manufacturing sector continued to expand in August, albeit at probably a slower rate.

According to analysts forecasts, the corresponding RBC Manufacturing Purchasing Managers Index is expected to come in at 53.9 in August, slightly below Julys 54.3. A better-than-expected reading would provide support to the Canadian dollar, and vice versa.

Technical view

usd-cad.02.09

According to Binary Tribune’s daily analysis, the central pivot point for the pair is at 1.0868. In case USD/CAD manages to breach the first resistance level at 1.0881, it will probably continue up to test 1.0890. In case the second key resistance is broken, the pair will probably attempt to advance to 1.0903.

If USD/CAD manages to breach the first key support at 1.0859, it will probably continue to slide and test 1.0846. With this second key support broken, movement to the downside will probably continue to 1.0837.

The mid-Pivot levels for today are as follows: M1 – 1.0842, M2 – 1.0853, M3 – 1.0864, M4 – 1.0875, M5 – 1.0886, M6 – 1.0897.

In weekly terms, the central pivot point is at 1.0894. The three key resistance levels are as follows: R1 – 1.0981, R2 – 1.1084, R3 – 1.1171. The three key support levels are: S1 – 1.0791, S2 – 1.0704, S3 – 1.0601.

TradingPedia.com is a financial media specialized in providing daily news and education covering Forex, equities and commodities. Our academies for traders cover Forex, Price Action and Social Trading.

Related News