Source: PaxForex Premium Analytics Portal, Fundamental Insight
US Initial Jobless Claims for the week of April 17th are predicted at 617K, and US Continuing Claims for the week of April 10th are predicted at 3,667K. Forex traders can compare this to US Initial Jobless Claims for the week of April 10th, reported at 576K, and to US Continuing Claims for the week of April 3rd, reported at 3,731K.
US Existing Home Sales for March are predicted to decrease by 0.8% monthly to 6.19M. Forex traders can compare this to US Existing Home Sales for February, which decreased by 6.6% monthly to 6.22M. The US Leading Index for March is predicted to increase by 1.0% monthly. Forex traders can compare this to the US Leading Index for February, which increased by 0.2% monthly.
The Canadian New Housing Price Index for March is predicted to increase by 1.4% monthly. Forex traders can compare this to the Canadian New Housing Price Index for February, which increased by 1.9% monthly.
The forecast for the USD/CAD remains bearish, with the narrow, descending Ichimoku Kinko Hyo Cloud maintain selling pressure. A combination of crushing debt and a likely disappointing summer holiday season in the US keeps bears in control. The Kijun-sen and the Tenkan-sen entered a sideways trend, with a crossover expected to fuel more selling. After the CCI moved into extreme oversold territory, traders should wait for a breakout before selling rallies in this currency pair. Can bears force more downside on the USD/CAD and push price action towards its next horizontal support area? Subscribe to the PaxForex Daily Fundamental Analysis and earn over 5,000 pips per month.
Should price action for the USD/CAD remain inside the or breakdown below the 1.2460 to 1.2555 zone, the following trade set-up is recommended:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Short Position @ 1.2500
- Take Profit Zone: 1.2245 – 1.2315
- Stop Loss Level: 1.2620
Should price action for the USD/CAD breakout above 1.2555, the following trade set-up is recommended:
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 1.2620
- Take Profit Zone: 1.2745 – 1.2810
- Stop Loss Level: 1.2555
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