Market Research and Analysis

Daily Market Analysis Report

Mon, 09 Jan 2017 02:15 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:
  • Sell Below: 1.3250
    Take Profit:
    1st @ 1.3185
    Stop Loss @ 1.3270


USDCAD traded mostly neutral at 1.3235, adding only 12 pips, having placed a high of 1.3267 and a low of 1.3176. The overall high to low movement remained 91 pips on Friday. The Loonie strengthen on better than expected labor market figures released from the Canadian economy. Further, the CAD bullish movement has been fueled by the recovery in crude oil prices, with the barrel of West Texas Intermediate managing to re-visit the $54.00 mark earlier today on positive data from both API and EIA reports and auspicious news from the OPEC agreement to limit the oil output.

Fundamental Overview

Canada posted its first trade surplus in more than two years and full-time jobs surged, a signal the economy may be absorbing the slack that’s kept interest rates near record lows. Full-time positions rose 81,300 in December from the previous month, the biggest gain since March 2012, and even after taking away 27,600 part-time jobs the total employment gain of 53,700 shattered the median economist forecast of a small decline. Statistics Canada also said Friday the merchandise trade balance swung to a C$526 million ($397 million) surplus.


  • BOC Business Outlook Survey


  • Labor Market Conditions Index
  • Consumer Credit m/m

Technical Overview

Technically, the USDCAD seems bearish as it broke below 61.8% Fib level and below 50 EMA, violating a support level of 1.3300. The pair continued to maintain the bearish momentum for 3 consecutive days, but the pair has formed a spinning top in daily timeframe, demonstrating neutral sentiment of investors regarding further selling. The RSI value also shifted to 47 from 24 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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