Market Research and Analysis

Daily Market Analysis Report

Wed, 04 Jan 2017 09:56 AM GMT

Author: Senior Forex Analyst, Arslan Ali Butt

  • Daily Trading Range:
  • 1.3400– 1.3055
  • Support & Resistance Levels:
  • R3: 1.3708
  • R2: 1.3616
  • R1: 1.356
  • Pivot Point: 1.3469
  • S1: 1.3377
  • S2: 1.3321
  • S3: 1.323
  • Trading Recommendation:
  • Buy Above: 1.3425
  • Take Profit
  • 1st @ 1.3470
  • Stop Loss @ 1.3400


USDCAD pair trades +0.16% higher at 1.3450, having posted fresh session highs at 1.3459. Loonie neglects to exploit higher oil costs, after the dark gold bounced back from a 2% drop booked a day prior on the back of an extensively more grounded USD. While persevering danger on assumption in the midst of higher treasury yields helps the greenback no matter how you look at it, hence, giving additional legs to the progressing recuperation in the USDCAD pair. The overall fluctuation remained 61 pips with a high of 1.3460 and a low of 1.3397.

Fundamental Overview

December data highlighted a positive end to 2016 for the Canadian manufacturing sector, led by the fastest upturn in incoming new work for two years. The latest survey also pointed to the strongest pace of production growth since July and a sustained rise in payroll numbers. However, input cost inflation accelerated for the third month running, driven by higher prices for imported materials, especially metals. Pressure on operating margins resulted in the steepest rise in factory gate prices since May 2014. At 51.8 in December, up from 51.5 in November, the seasonally adjusted Markit Canada Manufacturing.


  • No Economic Event Expected


  • Total Vehicle Sales

Technical Overview

Technically, the USDCAD seems neutral as it is trading just above 38.2% Fib level and below 50 EMA maintaining a trading range 1.3460 – 1.3390. As suggested in the previous report, the pair continued 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 RSI value also shifted to 49 from 41 with a slight change. The resistance at 1.3485 and 1.3535. Furthermore, the supports remains at 1.3425 and 1.3380 for the day.