Market Research and Analysis

Daily Market Analysis Report

Mon, 19 Dec 2016 03:10 AM GMT

Author: Senior Forex Analyst, Arslan Ali Butt

  • Daily Trading Range:
  • 1.3400– 1.3055
  • Support & Resistance Levels:
  • R3: 1.3491
    R2: 1.3432
    R1: 1.3396
    Pivot Point: 1.3338
    S1: 1.3279
    S2: 1.3243
    S3: 1.3185
  • Trading Recommendation:
  • Sell Below: 1.3340
    Take Profit:
    1st @ 1.3285
    Stop Loss @ 1.3360


USDCAD remained mostly unchanged at 1.333 after trading higher a month near consistent losses against the Canadian dollar, the US dollar gained 2.6% or roughly 340 pips on the back of a widely anticipated rate hike, but a less anticipated hawkish tilt in the infamous Federal Reserve Dot Plot. The high to low movement remained 72 pips.

Fundamental Overview

Foreign acquisitions of Canadian securities amounted to $15.8 billion in October, mainly Canadian corporate debt securities. At the same time, Canadian investors added $2.1 billion of foreign securities to their holdings, led by acquisitions of US corporate instruments. Foreign acquisitions of Canadian securities reached $15.8 billion in October, above the monthly average investment of $13.7 billion from January to September. The activity was mainly concentrated in Canadian debt securities issued by private corporations, both short- and long-term instruments.


  • No Economic Event


  • Flash Services PMI

Technical Overview

Technically, the USDCAD is till trading sharply bullish after having a noisy session and maintaining a strong bullish momentum. It came out of it narrow trading range 1.3299 – 1.3265. The pair is trading at 1.3310, crossing above 50 EMA. The RSI value also shifted to 67 from 69 with a slight change. The resistance at 1.3350 and 1.3430. Furthermore, the supports remains at 1.3215 and 1.3165 for the day.

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