Market Research and Analysis

Daily Market Analysis Report

Fri, 23 Dec 2016 04:11 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: 1.3450
    Take Profit:
    1st @ 1.3512
    Stop Loss @ 1.3430


USDCAD remained supported but turned slightly lower, trimming intraday picks up, in accordance with a wide USD pullback on the back of weaker-than-anticipated US customer spending information. USDCAD achieved a 2-week high of 1.3519 amid the New York session, supported by strong US GDP figures and powerless Canadian CPI. In any case, the pair backtracked a few picks up and dropped back beneath the mental level. At time of composing, USD/CAD is exchanging at 1.3468, still 0.44% up on the day.

Fundamental Overview

The Consumer Price Index (CPI) rose 1.2% on a year-over-year basis in November, following a 1.5% gain in October. Prices were up in six of the eight major components in the 12 months to November, with the shelter and transportation indexes contributing the most to the year-over-year rise in the CPI. The food index and the clothing and footwear index declined on a year-over-year basis. Consumer prices increase in six of the eight major components Consumer prices increase in six of the eight major components. Consumer prices increase in six of the eight major components The transportation index rose 1.4%.


  • GDP m/m


  • New Home Sales
  • Revised UoM Consumer Sentiment
  • Revised UoM Inflation Expectations

Technical Overview

Technically, the USDCAD continued to trade bullish at 1.3470, 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 60 from 62 with a slight change. The resistance at 1.3522 and 1.3565. Furthermore, the supports remains at 1.3445 and 1.3410 for the day.

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