Market Research and Analysis

Daily Market Analysis Report

Thu, 08 Dec 2016 03:45 AM GMT

Author: Senior Forex Analyst, Arslan Ali Butt

  • Daily Trading Range:
  • 1.3400– 1.3145
  • Support & Resistance Levels:
  • R3: 1.3323
  • R2: 1.3295
  • R1: 1.3278
  • Pivot Point: 1.325
  • S1: 1.3222
  • S2: 1.3205
  • S3: 1.3177
  • Trading Recommendation:
  • Sell Below: 1.3250

  • Take Profit:

  • 1st @ 1.3178

  • Stop Loss @ 1.3275


The USDCAD fell sharply in the New York sessions as the Canadian Dollar strengthened after the BOC rate decision. Let me requote my words from the previous report “The pair is trading at 1.3280 and traders are focusing on the Rate Decision today. I am not expecting any change in rate, though CAD can get stronger after decision.” The pair is continuing to trade in a bearish mode on Thursday.

Fundamental Overview

The Bank of Canada is keeping its key overnight rate at 0.5 per cent, pointing to a stronger global economy coupled with continued uncertainty regarding international trends. Donald Trump’s election win in the United States has created expectations in financial markets that Republicans in Washington will inject new fiscal stimulus into a U.S. economy that is near full capacity, a development the bank says has pushed Canadian bond yields “significantly” higher. The bank says the Canadian economy rebounded strongly in the third quarter, as expected, following a very weak first half of 2016.


  • Housing Starts
  • Building Permits m/m
  • NHPI m/m
  • Capacity Utilization Rate


  • Consumer Credit m/m
  • Unemployment Claims
  • Natural Gas Storage

Technical Overview

Technically, the USDCAD is trading at 1.3230, right below a 20 period EMA resistance level at 1.3280. There is a sharp downward shift in the value of RSI with a value at 33 from 39. As suggested earlier, the breakage below 1.3275 is likely to lead the market towards1.3220. Whereas the next target remains at 1.3175. The resistance at 1.3265 and 1.3300. Furthermore, the supports remains at 1.3202 and 1.3175 for the day.

Related Posts

Risk Warning:

There is a substantial risk of loss in trading commodity futures, option and off-change foreign currency products.
Read our General Risk Disclosure.