Market Research and Analysis

Daily Market Analysis Report

Fri, 06 Jan 2017 04:48 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:
  • Buy Above: 1.3225

    Take Profit:

    1st @ 1.3275

    Stop Loss @ 1.3200

USDCAD

USDCAD soared and continued to trade with bearish bias for the 7th consecutive trading session and tumbled over 120 pips from session peak near 1.3312 level. Currently trading around below 1.3250, recovery in the US treasury bond yields underpinned the greenback demand and provided a much needed respite for the bulls. In the process, the pair managed to defend 100-day SMA and snapped five consecutive days of losing streak. Whereas, the investors are still aiming for NFP- Non-farm Payrolls as well as the Unemployment Rates releasing today on Friday.

6-jan-cad
Fundamental Overview

The Industrial Product Price Index (IPPI) rose 0.3% in November. Higher prices for motorized and recreational vehicles and primary non-ferrous metal products were largely moderated by lower prices for energy and petroleum products. The Raw Materials Price Index (RMPI) decreased 2.0%, mainly due to lower prices for crude energy products. Prices for industrial goods increase Prices for industrial goods increase Chart 1: Prices for industrial goods increase Industrial Product Price Index, monthly change The IPPI rose 0.3% in November, following a 0.7% increase in October.

CAD

  • Employment Change
  • Trade Balance
  • Unemployment Rate
  • Ivey PMI

USD

  • Average Hourly Earnings m/m
  • Non-Farm Employment Change
  • Unemployment Rate
  • Trade Balance
  • Factory Orders m/m
  • FOMC Member Evans Speaks

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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