Market Research and Analysis

Daily Market Analysis Report

Thu, 12 Jan 2017 03:43 AM GMT

Author: Senior Forex Analyst, Arslan Ali Butt

  • Daily Trading Range:
  • 1.3400– 1.3055
  • Support & Resistance Levels:
  • R3: 1.3364
    R2: 1.3317
    R1: 1.3288
    Pivot Point: 1.3242
    S1: 1.3195
    S2: 1.3166
    S3: 1.312
  • Trading Recommendation:
  • (Still Active)
    Sell Below: 1.3185
    Take Profit:
    1st @ 1.3135
    Stop Loss @ 1.3210


On Thursday, the USDCAD trades lower at 1.3145 continuing its bearish momentum for the 2nd straight day. The pair broke out of a narrow range of 1.3270- 1.3190, and fell to 1.3118 on Wednesday, having placed a high of 1.3293 and a low of 1.3118. The overall high to low fluctuation remained 178 pips. Oil is trading bullish at 52.88, making CAD stronger, as the commodity currency has a positive correlation with the Canadian Dollar. Investors will focus on technical in the absence of any major economic event from the Canadian economy.

12 Jan CAD
Fundamental Overview

Municipalities issued $7.8 billion worth of building permits in November, down 0.1% from the previous month. The decline was largely the result of lower construction intentions in Alberta, following a spike the previous month due to impending changes to the Alberta Building Code. In the residential sector, the value of building permits fell 1.6% to $5.1 billion in November, following three consecutive monthly increases. Declines were posted in four provinces, led by Alberta. The largest gains were posted in British Columbia and Quebec. The value of non-residential building permits rose 3.0% to $2.6 billion in November.


  • NHPI m/m


  • President-Elect Trump Speaks
  • FOMC Member Dudley Speaks

Technical Overview

Technically, the USDCAD is bearish as it broke out of it’s descending triangle in H4 time frame. The pair has also violated its narrow range of 1.3270 – 1.3190. It has also formed 3 black soldiers in D1 timeframe and continued to maintain the bearish momentum for 3 consecutive days. The RSI value has shifted to 27 from 37. The resistance at 1.3190 and 1.3265. Furthermore, the supports remains at 1.3080 and 1.3045 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.