Market Research and Analysis

Daily Market Analysis Report

Thu, 22 Dec 2016 04:02 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:
  • Buy Above: 1.3390
    Take Profit:
    1st @ 1.3460
    Stop Loss @ 1.375

USDCAD

USDCAD is trading at 1.3437, up 0.24% on the day, having posted a daily high at 1.3449 and low at 1.3394. USDCAD has been exceptional offered since the Fed, in spite of the way that oil costs are raised and yield spreads have contracted. “The close term concentrate solidly focused on the more extensive market tone in front of Thursday’s retail deals and CPI and Friday’s month to month GDP for October, clarified examiners at Scotiabank, including, “We stay medium-term USD/CAD bulls (CAD bears) into 2017 and hold a Q2 2017 USDCAD focus of 1.40”.

22-dec-cad
Fundamental Overview

Wholesale sales increased 1.1% to $56.6 billion in October, offsetting most of September’s 1.5% decrease. Gains were recorded in five subsectors, led by higher sales in the building material and supplies, motor vehicle and parts, and food, beverage and tobacco subsectors. In volume terms, wholesale sales increased 0.9%. Sales rose in five of seven subsectors, representing approximately 87% of total wholesale sales. The building material and supplies subsector recorded the largest increase in dollar terms, up 2.8% to $7.6 billion on the strength of sales in the lumber, millwork, hardware and other building supplies industry.

CAD

  • CPI m/m
  • Core Retail Sales m/m
  • Retail Sales m/m
  • Core CPI m/m

USD

  • Core Durable Goods Orders m/m
  • Final GDP q/q
  • Unemployment Claims
  • Durable Goods Orders m/m
  • Final GDP Price Index q/q
  • HPI m/m
  • Core PCE Price Index m/m
  • Personal Spending m/m
  • CB Leading Index m/m
  • Personal Income m/m
  • Natural Gas Storage

Technical Overview

Technically, the USDCAD continued to trade bullish at 1.3410, after completing a retracement at 23.6% Fib Level and at 1.3355, trading just above mentioned level. Further, the pair has a narrow trading range 1.3435 – 1.3250. The pair is trading at 1.3365, holding above 50 EMA. The RSI value also shifted to 57 from 67 with a slight change. The resistance at 1.3422 and 1.3485. Furthermore, the supports remains at 1.3342 and 1.3310 for the day.

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