Market Research and Analysis

Daily Market Analysis Report

Tue, 10 Jan 2017 05:07 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: 1.3185
    Take Profit:
    1st @ 1.3135
    Stop Loss @ 1.3210

USDCAD

USDCAD consolidates in a narrow range of 1.3270- 1.3190, trading mostly neutral to bearish at 1.3205, losing only 11 pips, having placed a high of 1.3235 and a low of 1.3196. The overall high to low movement remained 37 pips on Monday. Oil is trading bearish, making CAD bear its consequences, as the commodity currency has a positive correlation with the Canadian Dollar. Moreover, oil has priced-in almost all bullish news accessible out there in the markets. The focus presently is on if the OPEC members are operating by the rules of the game. Besides, there are indications of an expansion in US supplies in response to higher prices.

10-jan-cad
Fundamental Overview

The results of the winter Business Outlook Survey indicate that business prospects have improved following two years of overall modest activity. The responses reflect building domestic demand, a supportive export outlook and an expected recovery in energy-related activity. Firms reported little change overall in the pace of past sales growth, with the balance of opinion hovering around zero for more than a year. Firms are generally more optimistic about their future sales prospects: both forward-looking measures continued to rise above the modest results associated with the energy downturn over the past two years.

CAD

  • Housing Starts
  • Building Permits m/m

USD

  • NFIB Small Business Index
  • JOLTS Job Openings
  • Final Wholesale Inventories m/m

Technical Overview

Technically, the USDCAD is neutral as it is forming a descending triangle in H4 time frame. Overall, the pair is moving sideways in a narrow range of 1.3270 – 1.3190. It has also formed 3 black soldiers in D1 timeframe and continued to maintain the bearish momentum for 3 consecutive days, but right now the pair has formed a spinning top in daily timeframe right above the major support area 1.3190, demonstrating neutral sentiment of investors regarding further selling. The RSI value also shifted to 35 from 47. The resistance at 1.3265 and 1.3325. Furthermore, the supports remains at 1.3190 and 1.3085 for the day.

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