USD/CAD: Technical Outlook

Canadian Dollar is heading for the second daily gains against its US counterpart ahead of Bank of Canada’s monthly Monetary Policy meeting later today.

Considering the recent improvements in the global manufacturing indices Canada, an export oriented country, expecting a rise in export income. No rate change is expected in today’s BoC meeting while the tone of BoC Governor, Stephen Poloz, in the speech after meeting is likely to be consistent with its recent improving stance.

The pair is currently trading near 1.0520, the second negative day of this week, indicating 1.0480 – 1.0430 support zone.

From the current level, 1.0600 level seems to be a good resistance level, breaking which it is expected to face the multiple resistance zone of 1.0660 – 1.0675.

If the pair continues to trade above 1.0675 level, it is vulnerable to head towards 2010 high of 1.0850 level.

On the downside, there are multiple support levels between 1.0480 and 1.0430, breaking which 1.0300 can be god support level (61.8% Fibonacci Retracement Level of its 1.0850 to 0.9405 downturn).

If the pair continues to fall below 1.0300, it may rest near 1.0210 level.

To sum up, the pair is liquidating some its weight ahead of important employment numbers to be released by US and Canada on this Friday. If the actual release indicates that the Canadian labor market is showing signs of progress, the pair may liquidate some more gains.

Original Article: Admiral Markets and hyper link Admiral Markets with http://www.admiralmarkets.com/