Market Research and Analysis

Daily Market Analysis Report

Thu, 05 Jan 2017 05:02 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: 0.7280

    Take Profit:

    1st @ 0.7330

    Stop Loss @ 0.7265

USDCAD

USDCAD pair continued to trade with bearish bias for the sixth consecutive trading session and tumbled over 100-pips from session peak near 1.3460 region. Currently trading around below 1.3300, testing two-week lows as well as 61.8% retracement level 1.3277. Despite retreating crude oil costs, with WTI crude petroleum turning around lion’s share of its day by day pick up, which tends to gouge interest for the ware connected currency – Loonie, neglected to give any relief to bulls and the pair broke underneath 20-day SMA to its least level since Dec. 19. Overall fluctuation remained 174 pips with a high of 1.3459 and a low of 1.3282.

5-jan-cad
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.

CAD

  • RMPI m/m
  • IPPI m/m

USD

  • ADP Non-Farm Employment Change
  • Unemployment Claims
  • Final Services PMI
  • ISM Non-Manufacturing PMI

Technical Overview

Technically, the USDCAD seems bearish as it broke below 38.2% Fib level and below 50 EMA, violating 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 29 from 49 with a dramatic change. The resistance at 1.3365 and 1.3410. Furthermore, the supports remains at 1.3215 and 1.3175 for the day.

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