Market Research and Analysis

Daily Market Analysis Report

Fri, 09 Jun 2017 07:21 AM GMT

Author: Senior Forex Analyst, Arslan Ali Butt

  • Daily Trading Range:
  • 1.3540– 1.3400
  • Support & Resistance Levels:
  • R3: 1.3855
    R2: 1.369
    R1: 1.3592
    Pivot Point: 1.3427
    S1: 1.3329
    S2: 1.3164
    S3: 1.3066
  • Trading Recommendation:
  • Buy Above 1.3490
    Take Profit:
    1st @ 1.3555
    Stop Loss @ 1.3470

USDCAD

USD/CAD is trading at 1.3513, down +0.0004 and +0.03% in the Asian Markets. Overall, the pair consolidated in a narrow trading range and under the resistance today. The Bank of Canada released the June issue of their Financial System Review which did not have much of an impact on the exchange rate. Similar to the currency pair, oil prices have also consolidated and are relatively unchanged as of the European close. The Canadian dollar tumbled across the board amid a sharp decline in crude oil prices. The WTI barrel is falling more than 4%.

9 June CAD
Fundamental Overview

Buyers of new homes in Canada saw prices rise 0.8% in April, the largest monthly increase since May 2016. Higher prices in Toronto and Vancouver led the gain. Toronto (+2.1%) and several surrounding census metropolitan areas (CMAs) in Ontario posted the largest gains of the 13 CMAs with price increases in April. Builders in Toronto tied the rise to favourable market conditions and a shortage of developed land. Builders in London cited improved market conditions, higher construction costs and a shortage of developed land as reasons for the 2.0% increase in new house prices.

CAD

  • Employment Change
  • Unemployment Rate
  • Capacity Utilization Rate

USD

  • Final Wholesale Inventories m/m

Technical Overview
The USDCAD is trading above 1.3513 level, the pair is likely to target the resistance levels might be located at 1.3545 , 1.3570 and 1.3610. Immediate support might be seen at 1.3485 and 1.3460. The key support is the area around today’s low at 1.3420, that is where an uptrend line from February stands. A close below would signal weakness ahead for the US dollar.

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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.