Market Research and Analysis

Daily Market Analysis Report

Mon, 26 Dec 2016 05:10 AM GMT

Author: Senior Forex Analyst, Arslan Ali Butt

  • Daily Trading Range:
  • 1.3400– 1.3055
  • Support & Resistance Levels:
  • R3:     1.3581

    R2:     1.3539

    R1:     1.3512

    Pivot Point:     1.347

    S1:     1.3428

    S2:     1.3401

    S3:     1.3359

  • Trading Recommendation:
  • Sell Below: 1.3535
  • Take Profit:
  • 1st @ 1.3460
  • Stop Loss @ 1.3560

USDCAD

USDCAD edged higher dramatically to trade at 1.3533 after the real gross domestic product of Canada was down 0.3% in October. Further, the bullish trend in the major was also fueled by better than expected New Home Sales released by the U.S, underpinning the demand for the USD as a single currency. Overall, the pair fluctuated 77 pips to trade at 1.3530 with a high of 1.3556 and a low of 1.3478.

26-dec-cad
Fundamental Overview

USDCAD remained bullish as the Canadian Dollar fell on worse than expected GDP. After increasing for four consecutive months, real gross domestic product was down 0.3% in October. Widespread decreases in manufacturing output and lower oil and gas extraction were the major contributors to the decline. Goods-producing industries contracted 1.3% as manufacturing, mining, quarrying, and oil and gas extraction, construction, utilities and the agriculture and forestry sector all declined in October. Service-producing industries edged up 0.1%, mainly due to increases in real estate and rental and leasing as well as retail and wholesale trade.

CAD

  • Bank Holiday

USD

  • Bank Holiday

Technical Overview

USDCAD was sharply bullish after having a quiet session and maintaining a strong bearish momentum for 4 consecutive days. It came out of it narrow trading range 1.3143 – 1.3100. The pair is trading at 1.3310, crossing above 50 EMA. The RSI value also shifted to 69 from 29 with a dramatically change. The resistance at 1.3550 and 1.3630. Furthermore, the supports remains at 1.3430 and 1.3350 for the day.

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