USDCAD Forecast | Daily Technical Forecast for January 19, 2017
USDCAD Technical Overview
Yesterday Closed 1.3272
Today Open 1.3272
Day’s Range 1.3253 – 1.3273
52 wk Range 1.2458 – 1.4541
1-Year Return – 9.02%
USDCAD Technical Support and Resistance
USDCAD Forecast: USDCAD pair possibly will find the immediate support at 1.3103. If, market breaks the first support then it will go for the following support to test. Following supports are 1.3048 and 1.2958.
On the other side the market has immediate resistance 1.3283. If, market breaks the primary resistance level then, market will go for the new resistance level 1.3338 and 1.3428.
USDCAD Fundamental Analysis
We had mentioned in our forecast yesterday that is was likely to be a key day in the direction of this pair with the rate statement from the BOC and the following press conference scheduled later. We had also mentioned that the USDCAD pair was in an important support region and that it is likely to bounce
with the region below 1.3000 as the support and we got the exact price action yesterday as we saw the pair bounce strongly as the USD and the CAD moved in opposite directions.
The dollar gained strength across the board on the back of comments from the Fed Chief Yellen who said that the economic data was on the line of expectations of the Fed and that the Fed is likely to hike rates in the coming months if the data continues to hold good.
It is exactly for this reason, the fact that the Fed is likely to hike rates and the BOC is set to lower rates, that we have been repeatedly mentioning that the pair is in an uptrend and it is only a matter of time before it reaches its medium term target of 1.4000. Looking ahead to today, we have the manufacturing sales data from Canada and the Unemployment claims and oil inventory data from the US, all of which are likely to bring in volatility but irrespective of these data, the uptrend in this pair is set in stone.