Market Research and Analysis

Daily Market Analysis Report

Tue, 03 Jan 2017 04:44 AM GMT

Author: Senior Forex Analyst, Arslan Ali Butt

  • Daily Trading Range:
  • 1.3600– 1.3255
  • Support & Resistance Levels:
  • R3:     1.3708R2:     1.3616

    R1:     1.356

    Pivot Point:     1.3469

    S1:     1.3377

    S2:     1.3321

    S3:     1.323

  • Trading Recommendation:
  • Sell Below: 1.3430Take Profit:

    1st @ 1.3455

    Stop Loss @ 1.3285


USDCAD soared slightly around 60 pips on Monday and to trade around 1.3441. The pair afterwards turned lower, as the dollar removed gains no matter how you look at it. USDCAD was rejected from a daily high of 1.3558 and slid through the 1.35 stamp toward a low of 1.3480 in late trading. At time of writing, the pair is trading at 1.3424 trading just above a previous 1.3401 close. The market is likely to trade in a thin volatility as most of the major economies are not releasing any major economic event on account of Bank Holiday.

Fundamental Overview

The trade deficit increased 5.5% in November to a seasonally adjusted annual $65.3 billion, the Commerce Department said Thursday. That was larger than the $62.5 billion gap forecast by economists surveyed by Market Watch. Exports rose 1.0% to $121.7 billion, while imports totaled $187.0, up 1.2% from October. Wholesale inventories edged up 0.9% to a level of $594.5 billion. That was 1.2% higher than a year ago.  The fundamentals for the CAD remains the same, CAD as single currency remains weaker on Inflation figures. 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.


  • RBC Manufacturing PMI


  • ISM Manufacturing PMI

Technical Overview

On Tuesday, the USDCAD trades bearish and it continues to trade lower at 1.3421, as it formed a tweezer top candlestick pattern in the previous week, demonstrating neutral sentiment of investors regarding further buying. The pair is trading at 1.3486, holding below 50 EMA. The RSI value also shifted to 40 from 56 with a slight change. The resistance at 1.3585 and 1.3635. Furthermore, the supports remains at 1.3425 and 1.3380 for the day.

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