Source: PaxForex Premium Analytics Portal, Fundamental Insight
The Australian Trade Balance for April came in at A$6,548M. Economists predicted a figure of A$5.370M. Forex traders can compare this to the Australian Trade Balance for March, reported at A$4,841M. Exports for April decreased by 2.5% monthly, and imports plunged by 7.2% monthly. Forex traders can compare this to exports for March, which contracted by 0.6% monthly, and imports, which rose by 4.2% monthly.
Australian Home Loans for April rose 4.3% monthly, and Investment Lending for Homes increased 5.6% monthly. Forex traders can compare this to Australian Home Loans for March, which expanded by 3.5% monthly, and Investment Lending for Homes, which accelerated by 3.8% monthly.
Australian Building Approvals for April decreased by 0.3% monthly, and Private House Approvals dropped by 1.6% monthly. Forex traders can compare this to Australian Building Approvals for March, which rose 1.9% monthly, and Private House Approvals, which increased 3.8% monthly.
The Canadian Trade Balance for April is predicted at -C$1.20B. Forex traders can compare this to the Canadian Trade Balance for March, reported at -C$2.28B.
The Canadian Ivey PMI for May is predicted at 65.2. Forex traders can compare this to the Canadian Ivey PMI for April, reported at 63.0.
The forecast for the AUD/CAD turned bearish after this currency pair advanced into its horizontal resistance area, and the latest D1 candlestick formed an inverted hammer. Short-term volatility may increase with the Tenkan-sen and the Kijun-sen moving higher, but the Tenkan-sen losing momentum. The Senkou Span A of the Ichimoku Kinko Hyo Cloud drifts higher, but the Senkou Span B is flat. Traders should also monitor the CCI in extreme overbought territory with the formation of a negative divergence. A breakdown below 100 could trigger a correction. Can bears regain control over the AUD/CAD and force price action into its horizontal support area? Subscribe to the PaxForex Daily Fundamental Analysis and earn over 5,000 pips per month.
Should price action for the AUD/CAD remain inside the or breakdown below the 0.9090 to 0.9125 zone, PaxForex recommends the following trade setup:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Short Position @ 0.9105
- Take Profit Zone: 0.8900 – 0.8950
- Stop Loss Level: 0.9160
Should price action for the AUD/CAD break out above 0.9125, PaxForex recommends the following trade setup:
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 0.9160
- Take Profit Zone: 0.9230 – 0.9280
- Stop Loss Level: 0.9125
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