Market Research and Analysis

Daily Market Analysis Report

Tue, 27 Dec 2016 03:50 AM GMT

Author: Senior Forex Analyst, Arslan Ali Butt

  • Daily Trading Range:
  • 1.3400– 1.3055
  • Support & Resistance Levels:
  • R3:     1.3581R2:     1.3539

    R1:     1.3512

    Pivot Point:     1.347

    S1:     1.3428

    S2:     1.3401

    S3:     1.3359

  • Trading Recommendation:
  • Buy Above: 1.3510
    Take Profit:
    1st @ 1.3565
    Stop Loss @ 1.3485


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.

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.


  • Bank Holiday


  • CB Consumer Confidence

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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