USD CAD Forecast | Daily Technical Forecast for February 8, 2017
USD CAD Technical Overview
Yesterday Closed 1.3186
Today Open 1.3186
Day’s Range 1.3171 – 1.3200
52 wk Range 1.2458 – 1.4017
1-Year Return – 5.29%
Technical Support and Resistance
Our Possible trading range for today 1.3171 – 1.3200
|Support 1: 1.3102||Resistance 1: 1.3212|
|Support 2: 1.3069||Resistance 2: 1.3245|
|Support 3: 1.3014||Resistance 3: 1.3300|
USD CAD Fundamental Analysis
USD CAD continued its rise for the second day today as the bulls in the pair finally seemed to have regained control over the pair after spending much of last week trying to wage a firefight against the bears who were threatening to seize control and pushing the pair below 1.300. We had been repeatedly mentioning in our forecasts that the region around 1.3000 is the line in the sand for both the bears and the bulls and if this region is broken cleanly, then the bears are fully in control and we should see a change in trend.
It is to the credit of the bulls that they have successfully repelled the serious challenge of the bears and now seem set to take the pair higher and higher. They were helped in this endeavor by the fall in the oil prices that we have been witnessing over the past couple of days. We have been seeing a buildup and increase in oil production from North America ever since the oil production cut deal came into effect and this effectively neutralizes a large part of the cut agreement and this is the reason why we are finding the oil prices moving lower. The Canadian economy depends a lot on oil prices and with its fall, we see the weakening of CAD as well and this is why we have been seeing the USD CAD pair make a move towards 1.3200 during these 2 days.
Looking ahead to today, we do not have any major economic news from Canada for today but we do have the oil inventory data from the US which should be watched closely by the investors to see if there is any further build up in the inventory and if there is, then we should see a further weakening of the CAD.